USD/CNY: 1Y NDFs were seen above 7.2100 in early trading on Tuesday but slid to a low of 7.1820 into the close of Asia before bouncing back up to near 7.2000-levels in NY. Another lower midpoint fixing of 6.9234 vs. yesterday's close of 6.9330 resulted in a gap lower at the open, with onshore spot opening at 6.9280. Further downside was seen subsequently and the pair printed a low of 6.9215 towards the close. Authorities should continue to guard gains ahead of the key 6.9500 handle in onshore spot.
USD/CNH: Pair was seen inching higher again to break above the 6.9000 handle, and a high of 6.9129 was printed. The CNY/CNH spread has now narrowed to about 2 big figures as we had expected.
USD/SGD: Pair continued to trade on either side of 1.4360 in NY, with limited traction seen ahead of President Trump's press conference scheduled for later today. Upside potential is still seen. A break above 1.4400 still remains on the cards before the end of the week, but any large moves remain unlikely ahead of Trump's press conference.
USD/IDR: 1M NDFs were seen consolidating around 13340 in NY trading hours. Onshore spot gapped lower to open at 13335 vs. last close of 13365 and slid below 13320 in early trading as the dollar index gave up some gains. A break below support level at 13300 was seen subsequently to a near 1-month low of 13285, although strong bids brought the pair back above the support level. Break of support level at 13300 relieves some upside pressures, although any large moves remain unlikely ahead Trump's press conference later in the week. Any gains towards 13500 are likely to remain guarded by the central bank.
USD/INR: 1M NDFs rallied in NY, picking up pace from a low of 68.2000 to edge to a high of 68.6100 at last look. Onshore spot gapped lower to open at 68.0800 vs. last close of 68.2050 and a slight slip below the 68 handle to a low of 67.9900 was also seen as the dollar index gave up some gains. Bids just below the level however brought the pair quickly above it, and gains towards 68.2000 were seen at last check. 68 remains the key level to watch, and we do not expect the pair to deviate too much from the handle ahead of Trump's press conference and Dec CPI release scheduled for later this week.
DATA RELEASED TODAY MORNING AND DUE TODAY
- 04:00 GMT - MY: Industrial Production (Nov) [Mkt: 5.5, Prev: 4.2]
- 05:00 GMT - JP: Leading indicator (Prelim) (Nov) [Mkt: 102.6, Prev: 100.8]
- 09:30 GMT - UK: Construction Output (sa) (Nov) [Mkt: 0.2, Prev: -0.6]
- 09:30 GMT - UK: Construction Output (sa) (Nov) [Mkt: 2, Prev: 0.6]
- 09:30 GMT - UK: Industrial Production (Nov) 4cast:0.8 % m/m [Mkt: 1, Prev: -1.3]
- 09:30 GMT - UK: Industrial Production (Nov) 4cast:0.5 % y/y [Mkt: 0.7, Prev: -1.1]
- 09:30 GMT - UK: Manufacturing Production (Nov) 4cast:0.8 % m/m [Mkt: 0.5, Prev: -0.9]
- 09:30 GMT - UK: Manufacturing Production (Nov) 4cast:0.7 % y/y [Mkt: 0.4, Prev: -0.4]
- 09:30 GMT - UK: Trade Balance (Non-EU) (Nov) [Mkt: -3.5, Prev: -1.598]
- 09:30 GMT - UK: Visible Trade Balance (World) (Nov) [Mkt: -11.15, Prev: -9.7]
- 15:00 GMT - UK: NIESR GDP Est. (Dec) [Mkt: 0.5, Prev: 0.4]
- 23:50 GMT - JP: Bank Lending Data (Dec) [Prev: 2.4]
- 23:50 GMT - JP: Current Account (Nov) [Mkt: 1481.8, Prev: 1719.9]
EVENTS & AUCTIONS
- 03:45 GMT - JP: 30y JGB auction
- 10:45 GMT - EU: EU's Juncker Speaks in Valletta
- 14:15 GMT - UK: BoE's Carney Testifies to Lawmakers
- 18:00 GMT - US: 10y notes reopening - USD 20.00 Bn (Act)