Asia Open - Overnight Highlights

EMERGING ASIA

EM currencies are trading mostly weaker against the greenback as risk asset recovered partially, especially U.S. equities on soft U.S. CPI. The biggest winners are INR 0.72%, followed by THB 0.07%, PHP 0.03% and IDR 0.02%; while the biggest losers are TWD 0.20%, SGD 0.14%, KRW 0.09%, MYR & CNH 0.06%, CNY 0.02% and HKD 0.02%.

USD/CNH is trading lower at 7.0327 from 7.0402 previously closed. Onshore spot market is trading lower at 7.0413 from 7.0440 closed before the national holiday. 12 month NDF followed both the on/offshore market and is trading lower at 6.9007 from 6.9077 previously closed.

USD/IDR spot market is trading higher at 16716 from 16688 previously closed. 1 month NDF is trading higher at 16706 from 16691 previously closed.

USD/INR onshore spot market is trading lower at 90.25 from 90.37 previously closed. 1 month NDF is trading lower at 90.63 from 90.78 previously closed.

NA Session

US CPI was significantly softer than expected, falling to 2.7% yr/yr in November with the core at 2.6%, both from 3.0% in September, with October data not published. The rise over the two months was 0.2% both overall and core, with the latter rounded up. December’s Philly Fed index was weaker at -10.2 from -1.7, but initial claims at 224k from 237k were close to expectations. The BoE eased by 25bps but some were surprised by four dissenting votes. The ECB left rates on hold as expected. 

The USD slipped after the CPI but came off its lows and USD losses were generally moderate, USD/JPY to near 155.60 from 155.80 while EUR/USD advanced to 1.1725 from 1.1715. GBP picked up on the BoE with EUR/GBP softer near .8760 from .8780. Equities were supported by the US CPI, but AUD and CAD saw limited movement.