Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading individually against the greenback as market participants took their time to digest the detail of latest U.S. CPI. The largest winners are MYR 0.28%, followed by INR 0.21% and TWD 0.02%; while the biggest losers are KRW 0.32%, followed by SGD 0.25%, CNH 0.17%, CNY 0.15%, PHP 0.11%, IDR 0.09% and THB 0.06%.

USD/CNH is trading higher at 7.1845 from 7.1723 previously closed. Onshore spot market is trading higher at 7.1825 from 7.1720. 12 month NDF followed both the on/offshore market and is trading higher at 7.0104 from 7.0008 previously closed.

USD/IDR spot market is trading higher at 16260 from 16245 previously closed. 1 month NDF is trading lower at 16289 from 16292 previously closed.

USD/INR onshore spot market is trading lower at 85.81 from 85.99. 1 month NDF is trading unchanged at 86.10 from previously closed.

NA Session

US June CPI was as expected at 0.3% overall, but came in lower than expected at 0.2%, 0.228% before rounding, ex food and energy. The USD and UST yields saw an initial modest dip on the data but subsequently rebounded, with some components of goods seeming to get a lift from tariffs. EUR/USD fell to 1.16 after peaking just below 1.17, while USD/JPY reached 149 from near 147.75. EUR/GBP was softer near .8665.  

Canadian CPI was as expected at 1.9% from 1.7% and with the core rates stable to higher was seen as arguing against a July BoC easing. USD/CAD rose to 1.3715 from 1.3675 but AUD/CAD was lower near .8940 after peaking at .8995.  

July’s Empire State manufacturing survey, released with the CPI, was stronger at 5.5, its first positive since February, from -16.0 in June. Trump announced a trade deal with Indonesia under which Indonesia would pay a 19% tariff while committing to buy a variety of US goods.