Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly stronger against the USD as USD gave back some weekly gains on softer data. The biggest winners are IDR by 0.59%, SGD 0.4%, PHP 0.34%, CNH 0.23%, THB 0.2%, INR 0.07% and CNY by 0.01% ; the largest loser are HKD 0.07%, TWD 0.06% and MYR 0.01%.

USD/CNH is trading lower at 7.2924 from 7.3091 previously closed. Onshore spot market is trading lower at 7.2954 from 7.2958 previously closed. 12 month NDF followed both the on/offshore market and is trading higher at 7.1321 compared to 7.1428 previously closed.

USD/IDR spot market is trading lower at 16222 from 16313 previously closed. 1 month NDF is trading lower at 16221 from 16379 previously closed.

USD/INR onshore spot market is trading lower at 85.02 from 85.07 previously closed. 1 month NDF is trading lower at 85.17 from 85.32 previously closed.

North America Session

US core PCE prices were weaker than expected in November, rising by only 0.1%, while gains of 0.3% in personal income and 0.4% in spending were also slightly below expectations. The USD dipped on the release and while the initial reaction was modest, USD losses extended into the afternoon, while equities rallied. 

GBP/USD was particularly strong, rising to 1.26 from near 1.25. EUR/USD gains stalled ahead of 1.0450 as EUR/GBP slipped below .83 but EUR/CHF rebounded back above 0.93. USD/JPY slipped to 156 from 156.80. AUD/USD rose to .6270 from .6230, while AUD/CAD rose to .90. The leader of Canada’s New Democratic party stated he would vote against the government in a vote of confidence, raising risk of an election early in 2025. Efforts to avert a US government shutdown continued.