China Data Slightly Better Than Expected, CNH Steady Near 7.1700

Asia FX has tracked relatively tight ranges in Friday trade to date. There has been slight underperformance against modestly lower USD index levels. An offset has come from higher oil prices, as the US/UK launched military strikes against the Houthis in Yemen. We still wait for China aggregate finance/new loans data for December. India CPI and IP prints later. On Monday the focus will be on whether China cuts the 1yr MLF rate (current consensus is for a 10bps cut to 2.40%). Note the BoT policy briefing is also scheduled for Monday morning local time.

• USD/CNH currently tracks near 7.1700, slightly lower for the session. On the data front, we have had inflation and trade figures for Dec. On balance they were slightly better than expected, but are not painting an upbeat picture. Export growth was inflated by base effects while CPI and PPI remain in deflation territory. Onshore equities are mixed after a positive rebound yesterday.
• 1 month USD/KRW got close to 1309 in early trade, but sits back at 1312 in recent dealings, little changed for the session. Onshore equities continue to underperform, down 0.80%, as offshore investors sell local shares, -$308.3mn, unwinding some yesterday's impressive inflow. Troubled local builder Taeyoung won a vote to start restructuring (BBG).
• TWD has been relatively steady. The 1 month USD/TWD NDF is near 30.90 as Saturday's election comes into view. Onshore equities are down a touch.
• USD/INR has drifted lower, last under 83.00, not too far from mid Dec lows. We sit comfortably off recent highs close to 83.40. Local equities are maintaining a positive tone, although offshore investors have been net sellers so far this week. We have CPI and IP data coming up later.
• USD/IDR is slightly lower, but has maintained tight ranges overall, last near 15545/50 in spot terms. USD/THB spot is holding above 35.00, while USD/PHP is a little weaker and back above 56.00.