CNH Loses Ground, Weaker Spot Levels For THB & IDR, BNM Still To Come

USD/Asia pairs have had a positive bias for today's session. USD/CNH gains have been in focus, with the pair back above 7.1700. Elsewhere spot USD gains have reflected catch up to Tuesday dollar gains, with NDF levels relatively steady. Still to come is the BNM decision in Malaysia with no change expected. Then tomorrow we have South Korean business sentiment early, followed by Q4 GDP. Later on, Hong Kong trade data prints for Dec.

• USD/CNH sits higher today, the pair last above 7.1700, but unable to crack above 7.1800 in earlier trade. Funding conditions in the CNH have eased somewhat, TN back at +2.9, while CNH deposit rates have edged down. This has worked against CNH at the margin, while local equities have struggled to build on yesterday's gains. We have a PBoC press conference at 3pm local time, where economic conditions are likely to be discussed.
• 1 month USD/KRW hasn't spent too much time outside of a 1336/1338 range so far today. Local equities have struggled but this hasn't been a meaningful headwind for the won. North Korea fired cruise missiles in the latest sign of tensions, but again market impact was negligible. Earlier consumer confidence rose, while inflation expectations eased.
• In India, HSBC Jan P PMIs have shown sequential improvement on the Dec outcomes. The manufacturing up to 56.9 from 54.9 prior. Services rose to 61.2 from 59.0. This paints a resilient growth backdrop. INR us relatively steady though, last near 83.15, maintaining a very low vol to broader USD trends.
• USD/IDR spiked higher in early trade, but is off earlier highs. Spot's move above 15700 was largely reflective of NDF weakness in US trade on Tuesday as US real yields printed fresh multi-week highs. We haven't been above 15700 since Nov last year.
• USD/THB also rallied strongly from the open, but we are seeing some resistance around the 35.85/90 region, which is a touch above mid Dec highs from last year.