Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies perform mostly individually against the USD as USD chops around on the on point NFP report and subsequent Fed speaker's remark. The biggest winners are THB by 0.78%, followed by PHP 0.24%, MYR 0.22%, TWD 0.15%, IDR 0.06%, IDR 0.04% and HKD 0.03%; the largest loser are KRW 0.48%, CNH 0.29%, SGD 0.28% and CNY 0.18%.

USD/CNH is trading higher at 7.2843 from 7.2635 previously closed. Onshore spot market is trading higher at 7.2715 from 7.2581 previously closed. 12 month NDF followed both the on/offshore market and is trading higher at 7.1033 compared to 7.0826 previously closed.

USD/IDR spot market is trading lower at 15845 from 15862 previously closed. 1 month NDF is trading unchanged at 15866 from previously closed.

USD/INR onshore spot market is trading lower at 84.69 from 84.73 previously closed.. 1 month NDF is trading unchanged at 84.83 from  previously closed.

North America Session

November’s US non-farm payroll with a 227k increase was near consensus, but with 56k in upward back month revisions. Average hourly earnings were on the firm side with a 0.4% increase but unemployment rose to 4.2% from 4.1%. Overall, a fairly strong report, but with markets seeing it as not quite strong enough to cause the FOMC to pause in December the USD initially slipped on the release, EUR/USD rising to 1.0630, GBP/USD above 1.28 and USD/JPY down a big figure to 149.40.  

However, with Fed talk from Bowman, Goolsbee, Hammack and Daly making it clear a December ease was far from assured, and the Michigan CSI rising in its preliminary December release to 74.0 from 71.8, the USD more than fully erased its post-data losses, EUR/USD falling to near 1.0550 and GBP/USD below 1.2750. USD/JPY however saw only a partial reversal of its post-data losses, settling near 150.  

Canadian employment saw a stronger than expected 50.5k rise, but with 45k of that coming in the public sector and unemployment up to 6.8% from 6.5%, USD/CAD rose by a big figure to 1.4150. AUD/USD also slipped, below .64, with AUD/CAD above pre-data levels but well off its highs.