Dollar Gains Continue

USD/Asia pairs are higher across the board today, albeit with current levels sub highs for the session. USD/CNH broke higher, getting above 7.2300 before selling interest emerged. Regional equities are mostly lower, while the USD has recovered further ground against the majors, which has also weighed. Still to come today we have Taiwan July trade data. Tomorrow, China July inflation figures are out. South Korea unemployment figures are due, as are Taiwan CPI figures.

• USD/CNH sits off session highs, last tracking around 7.2200. The early impetus for CNH weakness came from a move up in the USD/CNY fixing level (above 7.1500), while onshore and HK equities were also weaker in early trade. The pair got to a high of 7.2321 before retracing. Onshore equities have improved, although are struggling to maintain a positive bias. HK equities remain in the red. July trade data was weaker than expected, particularly in terms of import growth.
• 1 month USD/KRW got to fresh highs near 1314 amid fresh CNH and JPY weakness. We sit slightly lower now, last in the 1312/13 region. Onshore equities are weaker, adding to USD support. Late June highs are the next potential upside target, coming in around 1322.
• The SGD NEER (per Goldman Sachs estimates) has firmed in early dealing this morning, the measure sits a touch off the base of the recent range. We sit ~0.5% below the top of the band. USD/SGD is ~0.2% higher on Tuesday, broader greenback trends are dominating flow on Tuesday, the pair last prints at $1.3430/40. In July Foreign Reserves ticked higher to $340.79bn from $331.19bn in June. The local docket is empty until Friday when the final read of Q2 GDP is due. There is no estimate and the prior read was 0.3% Q/Q.
• The Ringgit is at it's weakest level since July 24, broader greenback trends are dominating flows in Asia on Tuesday. USD/MYR sits at 4.5720/65, the pair is up ~0.3% and has breached the 20-day EMA (4.5652) this morning. On the wires yesterday July31 Foreign Reserves printed at $112.9bn ticking higher from the prior read of $111.8bn.
• The Rupee has trimmed Monday's gains in early dealing today, broader greenback trends are dominating today and USD/INR is up ~0.1%. The pair last prints at 82.80/81, Friday's highs remain intact for now. Technically USD/INR remains in a strong uptrend, bulls look to breach Fridays highs (82.8475) to target the 83 handle. Bears focus on the 20-Day EMA (82.27) to turn the tide. The highlight of the week is the RBIs latest monetary policy decision tomorrow no change to policy is expected. Further out Industrial Production also crosses on Friday, and is expected to tick lower to 5.0% Y/Y from 5.2% Y/Y.
• USD/IDR is testing above its simple 200-day MA (~15220). The pair last at 15225/50, +0.30% higher. We are down slightly from earlier levels. BI stated it will remain in the FX market to ensure stable supply/demand conditions. So, this will be a watch point for markets in the near term. On the data front, July consumer confidence eased for the second consecutive month falling 2.8% m/m to 123.5. Although it is 3.7% off the May high, it remains elevated and continues to signal that retail sales should pick up.
• USD/PHP has backed away from a test of Fresh YTD highs. The pair last at 56.20/25, earlier highs were close to 56.40. The authorities may be mindful of a fresh break through this level. So, we could see verbal jawboning or actual intervention if current trends continue. June trade figures printed a little while ago, coming in slightly better than expected. Exports were +0.8% y/y (forecast -4.8%, prior 2.4%). Imports were -15.2% y/y, versus the -14.4% forecast. Prior was -8.1%. This meant the trade deficit was slightly better than forecast, -$3918mn, versus -4450mn expected.