Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly weaker against the USD in the earlier sessions with the greenback followed previous momentum stronger before retracing all gains in the New York session. CNH saw the largest losses of 0.2%, followed by TWD 0.16%, KRW and CNHY 0.14%, MYR 0.07%, IDR 0.06%, SGD 0.03% and HKD 0.02%; the biggest winners are THB by 0.29%, PHP 0.14% and INR 0.02%.

USD/CNH is trading higher at 7.2891 from 7.2746 previously closed. Onshore spot USD/CNY is trading higher at 7.2685 than 7.2583 previously closed. 12 month NDF followed both the on/offshore market and is trading higher at 7.0845 compared 7.0755 to previously closed.

USD/IDR spot market is trading higher at 16180 from 16170 previously closed. 1 month NDF is trading lower at 16175 from 16201 previously closed.

USD/INR onshore spot market is trading lower at 83.59 from 83.60 previously closed. 1 month NDF is trading lower at 83.61 from 83.65..

NA Session

The USD bounced on stronger than expected June retail sales data but the rise was largely erased by the end of the session leaving the USD little changed. EUR/USD fell from 1.09 to a low of 1.0872 before returning to 1.09. USD/JPY rose from near 158.30 to a high of 158.86 before slipping back to 158.40. There were similar moves elsewhere.

US retail sales were unchanged overall but up 0.4% ex autos and by a strong 0.8% ex autos and gasoline. Comments from Fed’s Kugler seeing rate cuts later this year may have assisted the USD reversal but the move was underway well before her comments. Canadian CPI was in line with expectations, slipping back to 2.7% yr/yr reversing an increase to 2.9% seen in May.