Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly weaker against the greenback as the USD regain partial losses in the previous trading day. The only winner is HKD by 0.01%; while the largest loser is KRW 0.85%, followed by MYR 0.32%, SGD 0.3%, CNH 0.24%, THB & CNY 0.18%, INR & PHP by 0.06%.

USD/CNH is trading higher at 7.2051 from 7.1876 previously closed. Onshore spot market is trading higher at 7.1990 from 7.1861. 12 month NDF diverged from both the on/offshore market and is trading higher at 7.0170 from 7.0095 previously closed.

USD/IDR spot market is trading higher at 16327 from 16308 previously closed. 1 month NDF is trading higher at 16388 rom 16312 previously closed.

USD/INR onshore spot market is trading higher at 85.58 from 85.51. 1 month NDF is trading higher at 85.72 from 85.54 previously closed.

NA Session

The USD was mostly little changed in North America, but USD/CAD fell, eventually by a big figure to 1.3715, after a stronger than expected Q1 GDP increase of 2.2% annualized, which was seen as reducing the changes of a BoC easing on Wednesday. AUD/USD saw only modest gains to .6440 from .6420, while EUR/USD edged up to 1.1355 from 1.1330. GBP/USD was little changed near 1.3470, as was USD/JPY near 143.90, the latter in the middle of a big figure range seen over the session. 

US data had a limited impact. A sharp fall in the April advance goods trade deficit to $87.6bn from a record $162.3bn as imports plunged from inflated pre-tariff levels was the main surprise and will support Q2 GDP. Core PCE prices with a rise of 0.1% and personal spending with a rise of 0.2% were subdued as expected in April but personal income saw a strong rise of 0.8%. May’s Final Michigan CSI was revised up to 52.2 from a preliminary 50.8, as inflation expectations were revised lower after the reduction in tariffs on China, the 5-10 year view to 4.2% from 4.6%.