CNH Higher On Stimulus Hopes, Other Aisa FX Weighed By Higher US Yields

Most USD/Asia pairs are higher today, although this afternoon has seen a sharp turn lower in USD/CNH on stimulus hopes, with onshore equities rallying. USD/KRW is off intra-day highs as well. Most other pairs are firmer though, weighed by the move up in US Tsy yields. Still to come, we have the Taiwan CBC decision (no change expected), along with May India trade data. Tomorrow Singapore May export figures are out.

• USD/CNH got to fresh highs of 7.1922 in the first part of trade, before retracing sharply lower this afternoon. We last sit back near 7.1600, around 0.15% firmer in CNH terms versus the NY close from Wed. Earlier highs coincided with weaker May activity data, but stimulus discussions continue in onshore media. Local equities are firmer after the lunchtime break, the CSI 300 up 1%, ChiNext +3%.
• 1 month USD/KRW got to highs of 1284, amid broad USD strength earlier, as US yields rose. We are back to 1275/76 now, as lower USD/CNH levels is aiding the won, while onshore equities are recovering from earlier lows.
• The SGD NEER (per Goldman Sachs estimates) has ticked away from Tuesday's cycle highs, the measure however remains well within recent ranges. We now sit ~0.6% below the upper end of the band. USD/SGD is ~0.3% higher today as broader greenback flows dominate. The pair sits a touch above the 20-Day EMA ($1.3447). Looking ahead, May Export data crosses tomorrow. Non-Oil Domestic Exports are estimated to have fallen 1.9% M/M and 7.7% Y/Y. Electronic Exports are also due, there is no estimate for the release.
• USD/MYR is ~0.3% firmer in early dealing sitting a touch below year to date highs (4.6398). The pair last prints at 4.6340/70. Broader USD/Asia trends have dominated flows today as the greenback is on the front foot after yesterday's hawkish Fed rate path projections. Technically the uptrend remains in place, bulls now target the high from 26 May at 4.6398 a break through here open 4.70. Bears first look to break the 20-Day EMA (4.5841) to turn the tide. The domestic data calendar is empty today and tomorrow.
• USD/IDR sits just below session highs, last in the 14955/60 region, around 0.40% weaker in IDR terms for the session so far. Higher core yields is weighing on rupiah sentiment, while the May trade surplus narrowed to $440mn from $3940mn, less than expected, due to a surge in import growth. Spot rupiah hasn't reacted a great deal post the trade data release.