Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly weaker against the USD as USD initially slipped in the earlier session for the day. The only winners are PHP by 0.09%, followed by TWD 0.07%, CNH 0.04% and THB 0.02%; the largest loser are KRW 0.23%, MYR 0.21%, SGD 0.18%, CNY 0.08%, IDR 0.06%, INR 0.03% and HKD 0.01%.

USD/CNH is trading lower at 7.2759 from 7.2791 previously closed. Onshore spot market is trading higher at 7.2691 from 7.2630 previously closed. 12 month NDF followed the onshore market and is trading lower at 7.1097 compared to 7.1130 previously closed.

USD/IDR spot market is trading higher at 15925 from 15915 previously closed. 1 month NDF is trading higher at 15977 from 15965 previously closed.

USD/INR onshore spot market is trading higher at 84.86 from 84.84 previously closed. 1 month NDF is trading lower at 85.03 from 85.04 previously closed.

North America Session

Pressure increased on the riskier currencies through the North American session as equities slipped and UST yields advanced, the latter reversing an early dip on higher US initial claims. USD/CAD broke above 1.42, GBP/USD fell to 1.2670 and AUD/USD fell to .6365. EUR/USD saw little response to an as expected 25bps ECB easing, and subsequently oscillated around 1.05, before falling to 1.0465. EUR/GBP and EUR/CHF were however firmer near .8260 and .9335 respectively.

US initial claims rose sharply to 242k from 225k. November PPI was higher than expected at 0.4% on a surge in food but the core rates were subdued, 0.2% ex food and energy and 0.1% ex food, energy and trade. There was not much response to the data but USD/JPY fell below 152, before rebounding to end firmer near 152.65.