CNH Weakens On Tech Equity Slump, Lower Bond Yields

USD/Asia pairs are mixed. There have been some spot gains, largely reflective of catch up with USD weakness, but the 1 month NDF space has been more measured. The USD has stabilized against the majors, while slumping China tech shares has weighed on CNH and impacted broader equity market sentiment in the region.

• USD/CNH got to highs of 7.1636 on headlines around fresh gaming curbs. We have seen China tech stocks slump in Hong Kong, but fallout for CNH has proven limited. USD/CNH is back to 7.1550, while CNY is near 7.1480 onshore. Local government bond yields have mostly tracked lower post large onshore banks cutting deposits rates. This has been another yuan headwind, albeit at the margins.
• 1 month USD/KRW has mostly tracked higher against late Thursday lows in NY trade (1294). The pair is last near 1299. Onshore equities are away from earlier highs on negative spill over from China tech stocks. Another headwind for the won has been higher USD/JPY levels.
• Spot USD/IDR sits in the 15485/90 region, down versus yesterday closing levels, but well within recent ranges. The 1 month NDF sits higher versus NY closing levels on Thursday, last at 15481, as the equity tone in the region has tempered risk appetite. The BI decision to push back against early rate cuts for next year is likely helping at the margin from a rupiah standpoint.
• Broader pressure on the USD has weighed on USD/MYR in early dealing this morning as onshore participants digest Thursday's greenback downtick. USD/MYR sits at its lowest level since mid August, last printing at 4.6290/4.6355 ~0.5% lower than yesterday's closing levels. November CPI printed at 1.5% Y/Y softer than the expected 1.7%.
• The SGD NEER (per Goldman Sachs estimates) is steady this morning, we remain well within recent ranges. The measure sits ~0.4% below the top of the band. USD/SGD ticked lower on Thursday as broader greenback flows weighed on the cross. We sit a touch off post-FOMC levels and last print at $1.3260/65. A reminder that the local docket is empty today.
• USD/PHP sits above session lows, last at 55.42 (earlier lows were at 55.30). We weren't too far from earlier Dec lows at 55.24. USD/PHP has moved away from earlier Dec highs above 56.00, although is yet to make a concerted break lower. PHP has lagged somewhat the softer USD backdrop, although we have seen some catch up in the past week.Local equities sit off recent highs.