Asia Open - Overnight Highlights

EMERGING ASIA

Most EM currencies are trading mostly stronger against the greenback as the USD retraced partial weekly gains. The biggest winner is SGD by 0.36%, followed by KRW 0.35%, TWD 0.32%, IDR 0.21%, PHP 0.19%, MYR 0.12%, CNH 0.09%, HKD 0.02% and CNY 0.01%; while the largest loser is THB 0.47%, followed by INR 0.31%.

USD/CNH is trading lower at 7.2049 from 7.2112  previously closed. Onshore spot market is trading lower at 7.2074 from 7.2084. 12 month NDF followed both the on/offshore market and is trading lower at 7.0242 compared to 7.0329 previously closed.

USD/IDR spot market is trading lower at 16515 from 16550 previously closed. 1 month NDF is trading lower at 16537 from 16571 previously closed.

USD/INR onshore spot market is trading higher at 85.54 from 85.27. 1 month NDF is trading higher at 85.65 from 85.64 previously closed.

NA Session

Despite a heavy calendar of US data, and lower UST yields, the USD saw little change. USD/JPY was marginally softer at 145.60 and EUR/USD slightly softer at 1.1180. GBP/USD held up better near 1.33 as EUR/GBP fell to near .84. EUR/CHF was also softer near .9340. USD/CAD advanced to 1.40 before reversing to 1.3960. AUD/USD was stable near .64. Equities also saw limited movement. 

US April retail sales with a 0.1% rise and unchanged initial claims at 229k provided no real surprises, but April PPI with a 0.5% decline, with ex food and energy down by 0.4% was weaker than expected, if largely offset by upward revisions to March. The detail of May’s Philly Fed and Empire State surveys was mostly improved but April manufacturing output was weak with a 0.4% decline, though overall industrial production was unchanged. May’s NAHB homebuilders survey fell significantly to 34 from 40. Fed’s Powell suggested the 2025 Fed policy framework review would no longer favor average inflation targeting, in which overshoots would be tolerated to compensate for prior undershoots.