In line with the majors, most USD/Asia pairs have moved above lows seen in the NY session. USD/CNH climbed, but couldn't get beyond 7.2000. THB has outperformed, with USD/THB back to 38.10/15. The focus tomorrow is on China PMI prints for September and the RBI interest rate decision, where a 50bps hike is expected.
- USD/CNH dips have been supported. The CNY fixing went back to a wide surprise, while the actual outcome was slightly below yesterday's (7.1102, versus 7.1107). The market looked to take the pair back through 7.2000, but we couldn't breach this level and we are now around 7.1900.
- USD/KRW couldn't sustain early lows sub 1430. Some resistance is evident ahead of 1440. Equities are higher (+1.25%), but we are away from best levels.
- USD/TWD remains below recent highs of 31.90. Onshore equities are also higher, but not as firm as Kospi gains. The CBC Governor appeared to walk back earlier comments in the week that the central bank would put in place FX controls in the event of severe outflows.
- Spot USD/IDR has dropped in sync with most USD/Asia crosses, catching up with overnight greenback sales. The rate last sits -21 figs at 15,242, albeit up from session lows, with familiar technical contours broadly intact.
- Spot USD/PHP is edging away from record highs printed Wednesday at 59.005. The pair last deals -0.05 at 58.938. Foreign investors were net sellers of $10.02mn in Philippine stocks Wednesday, with the PSEi sinking deeper into bear market territory. The index has recovered today, adding ~1.3% thus far.
- USD/THB is lower, dipping back to 38.13, around 0.65% below yesterday's closing levels. Some catch up from overnight USD weakness is in play. The BoT didn't appear too concerned about FX weakness, following last night's modest 25bps hike.