Broad Base Gains, USD/CNH Back Sub 50-Day MA

USD/Asia pairs are lower across the board. USD weakness against the majors, has spilled over to the region, and while CNH initially struggled to rally, it has caught up this afternoon. Lower US yields (2yr off ~10bps from early session highs) as the market continues to digest yesterday's FOMC, and a resilient equity market backdrop have been other positives. Still to comes is the BSP, with +25bps expected, as well as the CBC in Taiwan, with no change the consensus expectation. Tomorrow the data calendar has Singapore IP and Malaysian CPI.

• USD/CNH currently tracks just above session lows, currently around 6.8200 (we touched 6.8140/45 earlier). This is lows back to the first part of Feb. Gains have accelerated after the pair broke down through the 50 day MA (6.8431). CNH is up around 0.60% for the session, after lagging the USD sell-off to begin with. HK equity related equity strength, related to better technology earnings, is also likely helping at the margins.
• 1 month USD/KRW is close to its 50-day MA as well (near 1275), with the pair last around 1277/78. This puts the pair 1.5% sub NY closing levels. The recovery in local equities form early lows has helped, although this looks to be more a broad USD move, with the won showing its high beta characteristics.
• USD/TWD sits just under 30.40, fresh lows in the pair back to late Feb. We are below all key EMAs, except for the 200 day, which comes in at 30.375, so very close to current spot levels. The simple 50-day MA is also nearby at 30.405. A break below these levels could open up the low 30.00 region/high 29.00 region, which the pair bottomed out in early Feb. Taiwan equities have improved as the session progressed, +0.45% for the Taiex and note yesterday saw over $900mn in offshore inflows to local equities.
• USD/PHP sits below session highs, last around 54.40/45. This is still only 0.15% firmer in PHP terms versus yesterday's closing levels, so the peso is underperforming gains elsewhere in the region. The BSP is expected to hike rates by 25bps later.
• USD/INR is softer this morning, falling ~0.6% in the first part of dealing. The pair last printed at 82.15/20. The Rupee is tracking Asia FX gains seen in the wake of yesterday's dovish +25bps FOMC rate hike.US Treasury Yields are off session highs this morning further pressing the USD. From a technical perspective we have broken the 20-day EMA (82.44), bears now target the 200-Day EMA at 80.87. Bulls look to test the 83 handle.
• USD/SGD is sub Wednesday session lows, last near 1.3240/45. The NEER is elevated but slightly down off recent fresh highs. Feb inflation data was a touch below expectations, but core pressures remain elevated (5.5% y/y).