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Asia FX Underperforms The Majors (Correction in PHP Para)

ASIA FX

USD/Asia pairs are somewhat mixed, with USD/CNH generally supported on dips today. USD/TWD has continued to push lower amid further tech related equity gains. In SEA FX, the USD is mostly firmer. Tomorrow, we have Thai customs trade figures for Apr in a quiet start to the week data wise.

  • USD/CNH got to fresh highs near 7.0850, while dips sub 7.0700 have been supported. The pair last tracked 7.0760. The CNY fixing was again neutral, while China equities continue to struggle. In HK, the China Enterprise Index is close to bear market territory, down 19% from late January highs.
  • South Korean markets have been closed today, but 1 month USD/KRW upticks have mostly been sold. The pair was last around 1321.
  • USD/TWD continues to track lower amid buoyant equity market sentiment related to the tech sector. Spot was last around 30.63, the 1 month NDF near 30.58. Onshore equities are +0.75% for the session. Last Friday saw well over a $1bn flowing into local equities from offshore investors.
  • USD/IDR continues to gravitate higher, the pair last in the 14970/75 region, slightly down from session highs. Spot USD/IDR is right on the simple 50-day MA (14974), while beyond round figure resistance at 15000, we also have late March lows near 15050, which may act as upside resistance. BI stated last week at the policy decision it will continue aim towards IDR stability.
  • USD/THB got to fresh highs near 34.90, before selling interest emerged. The pair is last back in 34.70/75 region, still 0.15% weaker in baht terms versus closing levels on Friday. Election uncertainty persists, which is weighing on portfolio flows, although onshore equities are tracking higher today, the SET last around 0.55% higher.
  • USD/PHP is higher, the pair back above 56.00, last at 56.05, just shy of the simple 200-day MA. Gains in the pair above the 56.00 region haven't been sustained in recent months. On Friday BSP Governor Medalla stated a RRR cut is likely in June, although the central bank would not make it as part of the monetary policy announcement, as it should not be seen as part of the broader monetary policy backdrop.

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