Broad Based Gains, USD/CNH Sub 6.8000

Asian FX is seeing broad based gains against the USD. This is line with higher beta G10 currencies tracking firmer against the USD, while the firmer tone to regional equities/positive tone to US equity futures is helping as well.

• USD/CNH found selling interest above 6.8200 post the weaker than expected CNY fixing. The pair was last just under 6.8000, with onshore USD/CNY spot already through this level. China related news flow has generally been positive, with the PBoC talking up growth prospects, while the health authorities have played down the risks of fresh covid waves over the LNY period.
• 1 month USD/KRW is back 1247 (+0.50% in won terms), buoyed by a +2% Kospi gain. Offshore investors have added a further $186.6mn to local shares so far today.
• USD/THB is down 1.5% to 33.55. Some of this reflects catch up to USD weakness post the onshore spot close on Friday. Still, it is a favored currency on the China re-opening theme. We are now back to levels last seen in the first half of April 2022.
• MYR is +0.70%, with USD/MYR back to the 4.3700 handle. USD/PHP spot is slightly outperforming, with this pair down 0.80% to 55.21. Note the simple 200-day MA comes in at 55.306, so a sustained break below this level will embolden peso bulls.