Dollar Gains Continue For The Most Part

Most USD/Asia pairs maintained a firmer tone in Wednesday dealings. USD/CNH was steady with China markets still closed, while PHP continues to buck the broader USD trend. Likely intervention curbed USD gains elsewhere. Tomorrow, we have CPI prints in South Korea, the Philippines and Thailand as the focus points.

• USD/CNH has remained on the sidelines. The pair last near 7.3240, tracking tight ranges today and largely ignoring the firmer USD trend.
• South Korean markets have returned, with onshore equities slumping more than 2%, as catch up to recent global equity market weakness. Local data was better in terms of IP growth, but this didn't boost sentiment in the FX space. 1 month USD/KRW hasn't been able to break above 1360 though. The authorities stating they are prepared to act to curb excessive volatility in asset markets.
• Spot USD/TWD has continued to push higher, last near 32.43. The CBC (Taiwan central bank) told local lawmakers that there is no set level of defense for FX levels, but intervention smooths out volatility.
• USD/THB has hit fresh highs today, last at 37.20. We closed yesterday at 37.04, but the bias remains in the pair to test the upside. Broader USD trends remain firm, while local equities continue to track lower. The main macro focus today has been comments from BoT Governor Sethaput Suthiwartnarueput . On FX, the governor noted baht volatility has risen, but the central bank stands ready to curb excessive moves.
• USD/PHP tracks near 56.73 in recent dealings, down slightly (-0.12%), versus yesterday's closing levels. The pair has largely ignored the recent push higher in USD indices, although the move away in oil prices from recent highs has helped the terms of trade backdrop, albeit marginally. Tomorrow the focus rests on the September CPI print. The consensus looks for a 5.3% y/y outcome, the same as August. The m/m is expected at 0.4% (prior 1.1%). The BSP stated last week that its forecast range was 5.3-6.1% y/y for the September CPI.