CNH & THB +1% Against the USD

Asia FX is mostly higher, led by CNH, which is up around 1% against the USD. THB has also rebounded strongly, while other pairs have recorded more modest gains. Firmer China/HK equities has fuelled broader gains in risk appetite throughout the region, with a number of positive afternoon headlines adding to the moves. For Monday next week, China October trade figures will be in focus, with Indonesia Q3 GDP also due. Thailand CPI is also due in the first part of next week (Mon-Wed).

• USD/CNH is down more than 1% so far in the session, aided by strong onshore and HK equity gains. The pair dipped to a low around 7.2425. Besides on-going re-opening speculation, China asset sentiment has been boosted by comments from German Chancellor Scholz who met with China President Xi today and stated Germany wants further economic ties with China. The US audit team, conducting on-site inspections of China companies listed on US exchanges, has also completed its work earlier, which has provided an additional sentiment lift.
• USD/KRW 1 month is back to 1416, -0.55% versus NY closing levels. The Kospi is up +0.60%, buoyed by positive spill over from China/HK equity gains. Offshore equity inflows have also been strong in recent weeks. 1410 support on the downside could be eyed.
• USD/SGD is down 0.50%, in line with the regional trend. This puts the pair back at 1.4145. Retail sales for September were better than expected, +11.2% y/y, versus +10.8% forecast, while ex-Autos stayed elevated at +16.8% y/y.
• USD/IDR hasn't pulled back, the pair is last +31 figs at 15728. Higher UST real yields from overnight is likely weighing at the margin. Offshore investors were net sellers of $23.26mn in Indonesian stocks, although the Jakarta Comp snapped a two-day losing streak. The benchmark equity index resumed losses this morning, sliding towards support from its 200-DMA.
• PHP is up 0.80%, last at 58.365. BSP Gov Medalla calibrated his rhetoric, noting that the central bank may match more Fed rate hikes if domestic inflation continues to accelerate (today's outcome was +7.7% y/y versus +7.1% expected). Medalla had earlier said that the BSP will hike its policy rate by 75bp at the next meeting, mimicking the Fed's latest move. In today's remarks, he refused to draw a line in the sand for the peso, noting that he flagged the next interest-rate move well in advance to avoid depleting the Philippines' dollar reserves.
• THB gains are slightly stronger than CNH. USD/THB was last at 37.55, +1.25% higher for the session. The pair's RSI is sending bearish signals. It fell from overbought territory back in September and failed to return above the 70 threshold as the price printed higher highs and then ebbed lower alongside the spot rate, currently being on the verge of confirming a bearish failure swing. Foreign investors were net buyers of $79.67mn in Thai stocks Thursday, extending a renewed streak of daily inflows.