Asia Open - Overnight Highlights
EMERGING ASIA
EM currencies perform mostly weaker against the USD as the greenback strengthens on fear of Fed tilting hawkish after strong than expected U.S. wage data and haven bids from falling equity. SGD saw the largest losses of 0.42%, followed by KRW 0.35%, CNY 0.17%, PHP and CNH 0.15%, MYR 0.1%, THB 0.06% and IDR 0.03%; while the biggest winner is INR by 0.05%, HKD 0.02% and TWD 0.01%.
USD/CNH is trading higher at 7.2548 compared to the 7.2439 at previously closed. Onshore spot USD/CNY is trading higher at 7.2410 from 7.2290. 12 month NDF followed both the on/offshore market and is trading higher at 7.0482 compared to 7.0460 previously closed.
USD/IDR spot market is trading higher at 16259 from 16255 previously closed. 1 month NDF is trading higher at 16278 from 16252 previously closed.
USD/INR onshore spot market is trading lower at 83.43 from 83.47 previously closed. 1 month NDF is trading higher at 83.59 from 83.54 previously closed.
NA Session
The USD got a lift from a stronger than expected 1.2% increase in the Q1 US Employment Cost index. Weaker US consumer confidence at 97.0 in April versus 103.1 in March provided some restraint, with EUR/USD getting close to pre-ECI levels around 1.0720, but the USD advance subsequently resumed. EUR/USD fell to 1.0675 while USD/JPY advanced to 157.75 from near 1.57.
A rise in USD/CAD to 1.3760 from 1.3675 was also assisted by February’s Canadian GDP rise of 0.2% falling short of expectations. AUD/USD fell 40 pips to .6480 while GBP/USD fell 45bps to 1.25.
Shortly after the Employment Cost data February House Price Indices from FHFA and S and P/Case Shiller came in stronger than expected while shortly before the consumer confidence data April’s Chicago PMI was very weak at 37.9 from 41.4.