CNH Gains Curbed By Lower Equities, THB, TWD & IDR Rally

USD/Asia pairs are lower, but away from session troughs in recent dealings. USD/CNH broke to fresh multi-month lows, but sits higher now, with some headwinds from weaker equities. KRW has also underperformed somewhat, while THB, IDR and TWD have been stronger performers. Still to come is the BoT decision, while tomorrow we have official China PMIs and the BoK outcome.

• USD/CNH got to fresh lows of 7.1126 amid broader USD weakness (and a lower USD/CNY fix) before rebounding back above 7.1300 on HK/China equity market weakness. Sentiment was weighed by earnings concerns in the equity space. USD/CNH sits lower now, last near 7.1250. Note we are sub the simple 200-day MA (7.1369), which should act as a resistance point on any rebounds in the pair.
• 1 month USD/KRW hasn't been able to track to fresh lows despite a broadly softer USD backdrop. We couldn't get below 1283 and last tracked near 1289, above NY closing levels from Tuesday. Onshore equities haven't been able to rally despite a fairly dovish Fed backdrop. Tomorrow the BoK is seen on hold.
• 1 month USD/TWD has been able to generate greater downside traction, last near 31.00 and below the simple 200-day MA (31.25). Dips sub 31.00 have drawn some buying interest though. SocGen upgraded its outlook for Taiwan stocks on firmer AI related chip demand. The Taiex is modestly higher today, but offshore investors have added just over $7.7bn to local shares so far this month.
• USD/IDR sits up from early session lows, the pair last near 15380 (earlier lows at 15360). We are around 0.35% firmer in IDR terms for the session and back at late September levels. Moves back above 15400 have drawn selling interest. More broadly, USD/IDR is benefiting from the lower US yield backdrop and increased rate cut expectations for 1H24. The pairs inverse relationship with US real yields remains firm. We are sub all key EMAs except for the 200-day (15321). Note on the topside the 100-day sits at 15461.
• USD/THB got to 34.58 in early trade, up nearly 1% in baht terms, as the currency played catch up with USD weakness. We have since stabilized somewhat, last at 34.67, still 0.8% higher for the baht. This is back to early August lows in the pair. Coming up is the BoT decision. No change is expected.