CNH & KRW Weaken, Mixed Trends Elsewhere

USD/Asia pairs have been more mixed today, with a number rebounding from recent lows, most notably USD/CNH. USD/KRW has also bounced higher, but this trend is less evident for other pairs. The recovery in US yields, coupled with weakness in regional equities, is aiding the USD. Still to come today is India wholesale prices. Tomorrow the focus will be the China 1yr MLF rate outcome (no change expected) and Jan-Feb activity prints. Indonesian trade data is also due.

• USD/CNH has spent most the session on the front foot, although there appears some resistance ahead of the 6.8800 level. The CNY fixing was neutral, while onshore equities are weaker, but outperforming regional weakness elsewhere. Support for USD/CNH still appears evident around simple 50-day MA, ~6.8360.
• 1 month USD/KRW is back above 1300, last near 1304. Onshore equities are off by over 2%, while offshore investors have sold -$635.3mn in local shares. Dips below 1300 have been supported this month, while the equity backdrop looks poor from a technical standpoint. President Yoon will visit Japan later this week and hold a summit/dinner on Thursday.
• INR outperformance is being further unwound. USD/INR is back to 82.25/30, slightly below highs for the session. Still, the rupee has seen little benefit from the recent USD pullback. Yesterday's CPI print points to another RBI hike in April. We have wholesale price data due later today. The INR NEER is comfortably off early march higher.
• USD/PHP is off session highs, back near 55.00. Trade figures were weaker than expected, the trade deficit printing at -$5.74bn, versus -$4.381bn forecast. This puts the trade deficit just above record lows from mid 2022. This, along with a weaker equity tone is weighing PHP. Local stocks are off by around 1.1%. This puts the index back under 6500, which is also sub the simple 200-day MA. Yesterday saw -$384.7mn in net equity outflows, the largest single day of outflows since Sep 2015.
• The story is better for THB, with USD/THB not too far off recent lows at 34.50/55. The Thai parliament may be dissolved on March 20th, paving the wave for the general election. USD/MYR has also remained sub 4.5000, last near 4.4820/30, despite higher USD/CNH levels.