Consolidation After Recent Strong Gains

USD/Asia pairs have been mixed today. Some stability in US yields has likely curb downside USD momentum in the region, while equity trends have also been mixed. China activity data for October was weaker than expected, but didn't appear to impact sentiment a great deal. Tomorrow, China house price data is due, but otherwise the calendar is fairly quiet.

• USD/CNH has been range bound. Weaker activity data for October only weighed on sentiment briefly, while China equities have continued to recover. The pair has been largely in a 7.03/7.06 range, although CNH has outperformed a firmer USD backdrop against the majors, notably JPY. The CNY fixing came close to market expectations.
• USD/KRW has tracked recent ranges, with the 1 month NDF supported ahead of 1320, while moves above 1327 have drawn selling interest. Equities have been flat, with more interest in the Taiex today.
• USD/TWD tried to move lower at the open but found support close to 31.00, we were last at 31.07. The 1 month NDF has rebounded, back to 30.76, +0.60% above NY closing levels. Onshore equities have surged another 2.5%, after reports of Berkshire Hathaway building a position in TSMC through Q3. Last Friday and yesterday delivered the strongest 2-day sum of net equity inflows since end 2005.
• Spot USD/IDR has added 55 figs and last trades at 15,571 on tighter U.S./Indonesia yield spreads. A better than expected trade surplus for October ($5.67bn, versus $4.5bn forecast), hasn't aided FX sentiment. Foreign investors sold a net $66.05mn in Indonesian equities Monday. The Jakarta Comp faltered ~1%, but sits around flat levels today.
• Spot USD/PHP has edged higher after finding a base at 57.150 two days earlier and last changes hands +0.10 at 57.398. The Philippines overseas cash remittances rose 3.8% Y/Y in September, beating the consensus forecast of +3.6%. In absolute terms, September remittances were $2.840bn in September versus $2.721bn in August. The BSP guided that it will raise the policy rate by 75bp this week and is widely expected to make good on this promise.
• Spot USD/THB refreshed its cyclical lows this morning after a bearish inside day on Monday. The rate has trimmed losses since and last deals -0.18 at 35.73. For bears, the next technical target is provided by Aug 11 low/200-DMA at 35.160/35.133. Conversely, bulls keep an eye on the 100-DMA, which kicks in at 36.663. A shift away from CZS by China, albeit with an uncertain timetable, is likely buoying THB sentiment on the prospect of renewed tourism inflows from China.