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ASIA FX: SEA FX Modestly Weaker Amid Mixed Cross Asset Signals

ASIA FX

In South East Asia FX, there has been a modest bias towards USD/Asia gains, but we sit away from best levels. At this stage, THB FX is the worst performer off a modest 0.15% against the USD. Cross asset trends have been mixed, with a firmer regional equity tone (albeit with tech related markets leading), while a further tick up in US yields has helped keep USD/JPY supported on dips in terms of the majors. 

  • USD/THB got above 33.80 in earlier trade, but sits back at 33.70 in latest dealings. This keeps the pair within recent ranges.
  • Thailand August consumer confidence moderated to its lowest since May 2023. Not only does growth in Thailand continue to underperform the rest of ASEAN, but sentiment was probably impacted by August’s political instability. We should hear more about the new PM's plans to reform structural issues/boost growth later today. Reducing the household debt burden is a key focus point.
  • USD/MYR opened above 4.3400, but the pair sits back near 4.3300 in latest dealings, with little news flow so far today. It is a similar backdrop for USD/PHP, which is hovering around 56.00 in latest dealings.
  • USD/IDR is holding above 15410 in latest dealings. Recent lows at 15310 are firmly intact. The firmer equity backdrop is being offset by some US yield recovery for the pair. 

 

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