Baht Weakens, Tight Ranges Elsewhere As LNY Gets Underway

Outside of THB, Asian FX has been relatively muted. USD/THB has rallied towards 36.00. China FX markets have been open, but trading interest has been limited. Elsewhere South Korea, Indonesia and Philippine markets have been closed. On Monday China, Hong Kong, South Korea, Singapore, Taiwan and Malaysia will be closed.

• USD/CNH has mostly followed broader USD sentiment. We saw a brief dip sub 7.2100, but we track back at 7.2125 this afternoon. Hong Kong equities were weaker in a shortened session ahead of the LNY break, this hasn't impacted CNH.
• 1 month USD/KRW has had little direction, the pair last near 1330.5. Onshore markets return on Tuesday.
• USD/THB has gravitated higher, but hasn't breach 36.00 yet. The pair was last near 35.95. A break above 36.00 could see 36.15 targeted, highs from mid Nov last year. Earlier Nov highs rested around 36.33. The 20-day EMA is trending higher and sits back at 35.52. Baht is the weakest performer in EM Asia FX over the past week, down nearly 2% (MYR is the next worst of close to 1.3%). Continued fall out from the dovish BoT hold on Wednesday has also been a theme in recent sessions. Comments from Assistant BoT Governor Pit have crossed from a BBG interview. He reiterated that the policy stance is neutral, but with most growth risks to the downside. If growth weakens they may recalibrate the policy bias. Note Q4 GDP is due out on Feb 19.
• USD/INR sits a touch higher, last near 83.00, but remains well within recent ranges. Onshore equities are a touch weaker, with carry over from yesterday's hawkish RBI hold a potential headwind. The spike in oil prices on Thursday is also likely weighing at the margins.