Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the tariff man is not giving anyone a break. The biggest winner are INR by 0.75%, followed by SGD 0.16%, TWD and CNH 0.01%; the biggest losers are THB 0.49%, IDR 0.18%, PHP 0.17%, KRW 0.07%, HKD 0.04% and CNY by 0.03%.

USD/CNH is trading higher at 7.3100 from 7.3109 previously closed. Onshore spot market is trading higher at 7.3069 from 7.3050 previously closed. 12 month NDF diverged from both the on/offshore market and is trading lower at 7.1347 compared to 7.1429 previously closed.

USD/IDR spot market  is trading higher at 16375 from 16345 previously closed. 1 month NDF is trading higher at 16369 from 16366 previously closed.

USD/INR onshore spot market is trading lower at 86.83 from 87.48 previously closed. 1 month NDF is trading lower at 87.03 from 87.70 previously closed.

NA Session

While he stated there was no hurry to cut rates Fed Chairman Powell’s testimony to the US Senate brought few surprises, and the USD mostly slipped during the testimony, which was extended with a late move. EUR/USD advanced to 1.0365 from 1.0320 while GBP/USD rose to 1.2445 from 1.2370. USD/CAD saw a late move below 1.43 while AUD/USD tested 0.63. USD/JPY in contrast held firm, advancing above 152.50.  

Before Powell spoke Fed’s Hammack sounded quite hawkish, calling for rates to be held for some time, but got little response from a market that was waiting for Powell.  Fed's Williams was more balanced late in the session.