Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly weaker against the USD with the greenback gaining strongly on strong U.S. data. SGD and CNY saw the largest losses of 0.47%, followed by CNH 0.45%, MYR 0.39%, CNH 0.43%, MYR 0.39%, IDR 0.11%, THB 0.10% and HKD 0.06%; the only winners are PHP 0.05% and TWD 0.03%.

USD/CNH is trading higher at 7.1796 from 7.1471 previously closed. Onshore spot USD/CNY is trading higher at 7.1748 from 7.1411 previously closed. 12 month NDF followed both the on/offshore market and is trading higher at 6.9849 compared 6.9692 to previously closed.

USD/IDR spot market is trading higher at 15700  from 15675 previously closed. 1 month NDF is trading higher at 15775 from 15627 previously closed.

USD/INR onshore spot market is closed. 1 month NDF is trading lower at 84.02 from 84.04 previously closed.

NA Session

The USD bounced sharply on stronger than expected US July retail sales data which saw a 1.0% gain overall, with 0.4% gains ex autos and ex autos and gasoline, as well as a lower than expected weekly initial claims outcome of 227k from 234k, easing fears of a slowing in the US economy. 

USD/JPY bounced to a high of 149.32 from 147.25 and saw no significant correction, settling near 149. The riskier currencies however fully reversed their initial dips before seeing modest late slippage, GBP/USD rebounding from a low of 1.28 back above 1.2850.  Late USD/CAD gains saw it back near its post-data high of 1.3738 from pre-data levels around 1.37. EUR/USD slipped to a low of 1.0950 from above 1.01, before ending in mid-range near 1.0975, the EUR slipping versus the GBP but stronger versus the CHF. 

Other US data was quite soft, but had little impact. Moderately negative manufacturing surveys from the Philly Fed and Empire State accompanied the retail sales and initial claims releases, followed by a 0.6% fall in July industrial production, though this was fully due to a sharp dip in autos and temporary weakness due to Hurricane Beryl. August’s NAHB homebuilders’ index slipped to 39 from 42, but 6-month expectations were firmer. Fed’s Musalem denied the Fed was behind the curve, stating data did not suggest recession.