Published: 2023-12-20T00:00:04.000Z

Asia Open - Overnight Highlights

FX Analyst

285

EMERGING ASIAEM currencies perform individually against the USD as the greenback stays choppy after FOMC and the Christmas holiday approaching. MYR saw the largest gains of 0.35%, followed by CNH 0.32%, SGD 0.3%, CNY 0.18%, IDR 0.03% and THB 0.01%; while the biggest loser is KRW 0.81%, PHP 0.18%, TWD 0.16%, INR 0.15% and HKD 0.05%.

USD/CNH is trading lower at 7.1209 compared to the 7.1435 at previous close. Onshore spot USD/CNY is trading lower at 7.1185 from 7.1311. 12 month NDF followed the offshore market and is trading lower at 6.9662 compared to 6.9792 previous closed.

USD/IDR spot market is trading lower at 15506 from 15510 last closed. 1 month NDF is trading lower at 15479 from 15485 previous closed.

USD/INR onshore spot market is trading higher at 83.18 from 83.06. 1 month NDF is trading higher at 83.21 from 83.17 previously closed.

Major

The USD fell across the board through the North American session, but without any obvious driver other than a positive equity market picture. While there were some optimistic comments on declining inflation from the Fed’s Barkin, there was only a very modest decline in US yields, so this doesn’t look like the driver. USD/JPY fell a big figure below 144, while AUD/USD gained more than 0.5% to trade up to 0.6770. EUR/USD was up 40 pips at 1.0980.
USD/CAD dropped 50 pips to 1.3340, helped by stronger than expected Canadian CPI data. Headline was unchanged at 3.1% y/y against a market consensus of a drop to 2.9%nd the BoC’s preferred underlying measures were also above expectations, with the exception of common CPI. Nevertheless, CAD strength was only broadly in line with general USD weakness, with Canadian yields only marginally higher.
US housing starts with a 14.8% rise to 1560k were well above expectations though permits, down 2.5% to 1460k were in line, making the starts ruse look unlikely to be sustained.

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Analyst Declaration
I,Cephas Kin Long Yung, the FX Analyst declare that the views expressed herein are mine and are clear, fair and not misleading at the time of publication. They have not been influenced by any relationship, either a personal relationship of mine or a relationship of the firm, to any entity described or referred to herein nor to any client of Continuum Economics nor has any inducement been received in relation to those views. I further declare that in the preparation and publication of this report I have at all times followed all relevant Continuum Economics compliance protocols including those reasonably seeking to prevent the receipt or misuse of material non-public information.