Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform individually against the USD as the USD only rebound fiercely after the stronger than expected U.S. NFP. The biggest winners are PHP by 0.24%, THB 0.14%, MYR 0.12% and IDR by 0.09%; the largest loser are KRW by 0.79%, SGD 0.23%, INR 0.13%, CNH 0.1&, TWD 0.08%, HKD 0.06% and CNY 0.01%.

USD/CNH is trading higher at 7.3633 from 7.3561 previously closed. Onshore spot market is trading higher at 7.3326 than 7.3321 previously closed. 12 month NDF diverged from both the on/offshore market and is trading lower at 7.1920 compared to 7.1852 previously closed.

USD/IDR spot market is trading higher at 16190 from 16217 previously closed. 1 month NDF is trading lower at 16319 from 16244 previously closed.

USD/INR onshore spot market is trading higher at 85.97 from 85.86 previously closed. 1 month NDF is trading higher at 86.45 from 86.20 previously closed.

NA Session

A significantly stronger than expected 256k increase in US non-farm payrolls saw the USD bounce by around 0.5% across the board, though USD/CAD was an exception with a proportionately even stronger 92k increase in Canadian employment seeing an initial bounce quickly erased and more. The USD largely sustained its gains against EUR, GBP and AUD, with EUR/USD falling below 1.0250 from above 1.03, and GBP/USD near 1.22 from above 1.23. 

However, with equities under pressure, particularly after January Michigan CSI data showed a rise in the 5-10 year inflation expectation to 3.3% from 3.0%, USD/JPY more than fully erased its initial bounce and settled near pre-data levels slightly below 158. The dip in USD/CAD also found buyers, moving to around 1.4430 compared with pre-data levels near 1.4410.