Cautios Tones Sees USD/Asia Crosses Rise

The greenback continued to rally in a quiet session, most USD/Asia crosses higher, concern over a pickup in COVID-19 cases in the region weighs.

• CNH: Offshore yuan backs the trend and has strengthened for an eighth day, on track for its longest winning streak since November 2019.
• SGD: Singapore dollar is flat, moving in a narrow range after a round trip on Tuesday. Resistance seen at 1.3300.
• TWD: The Taiwan dollar is stronger again today, moves muted compared to earlier this week. USD/TWD draws closer to 28.00 with chatter of central bank intervention yesterday.
• KRW: The won is weaker, moving in a narrow range after gapping at the open. PPI and export data were positive, but coronavirus cases rose over 700 again.
• MYR: Ringitt is lower, but one of the better performers in the region. Palm oil futures surged in Malaysia by the most in almost three weeks Tuesday, even as WTI went offered. Malaysia's key export commodity was underpinned by strong shipments data & firmer soybean oil prices.
• IDR: Rupiah is weaker, pausing a three day rally, Bank Indonesia left its monetary policy settings unchanged Tuesday, in line with expectations, but trimmed its GDP forecast for 2021 to +4.1%-5.1% from +4.3%-5.3%. Unsurprisingly, BI continued to stress the need of maintaining rupiah stability amid persistent uncertainties.
• PHP: Peso is lower, the Philippine weather bureau raised Tropical Cyclone Wind Signal no. 2 in parts of Cagayan and Isabela, as Super Typhoon Surigae (Bising) approaches the Philippines' eastern regions.
• THB: Baht has declined, PM Prayuth said that Thailand is in talks with Pfizer to secure the supply of additional 10mn doses of the Covid-19 vaccine, possibly between Jul & the year-end. Pricing deal is yet to be reached. The PM threw his weight behind the national inoculation campaign, refusing to admit that its pace has been to slow and insisting that the gov't has prioritised the safety of jab recipients.