Export Dip Weighs On CNH, USD/KRW Back Above 1300

USD/Asia pairs are mixed today, with dips in USD/CNH and USD/KRW both supported. China trade figures created fresh concerns over the growth outlook, although commodity import demand appeared firm. Other pairs tracked recent ranges. Still to come is Taiwan export data for May, while tomorrow the main focus will be on the RBI decision, no change is expected. Also out is Thailand consumer confidence.

• USD/CNH dips towards 7.1100 were supported, the pair moving back above 7.1300 post weaker than expected export data. Imports were firmer, with commodity demand picking up, but this also weighed on the trade surplus position. The CNY fixing was neutral, while onshore equities are trying to climb. Property stimulus talks continue, while talk of Blinken trip to China may help lower US-China tensions.
• 1 month USD/KRW couldn't sustain a move sub 1295, the pair tracking back to 1300 at the time of writing. Weaker China export growth data has likely weighed at the margins, along with negative spill over from higher USD/CNH levels. Onshore equities are firmer, but the rate of offshore buying has slowed so far this week. Spot USD/KRW is back to 1302.
• USD/TWD is stuck in the middle of its recent range, last ~30.71. On the topside, the 200-day MA near 30.835 is offering resistance, while support is evident at the 50-day MA around 30.63/64, and below that is the 100-day MA at 30.52. TWD looks cheap relative to the continued strengthening in onshore equities, with the TWSE last near 16900, amid on-going tech optimism. The pace of equity inflows has slowed from offshore investors though. Another offset is coming from more elevated USD/CNY levels, with China still an important trading partner. Trade figures for May print later.
• USD/INR has opened dealing ~0.1% softer printing at 82.55/60 as broader USD trends dominate flows. The pair remains in a technical up-trend, bulls look to target a break of the 83 handle. The RBI intervened in the FX market earlier in the year when we came close to the handle. Bear's immediate focus is on the 20-Day EMA (82.4919), from there they look to target the low from May 4 at 81.6563. Global Investors sold $62.11mn of Indian equities on June 5, this was the first net outflow since late April.
• USD/MYR is ~0.1% softer this morning as the Ringgit pares some of Tuesday's losses. The pair is holding above 4.60 having been unable to sustain a recent break below the handle and last prints at 4.6040/60. Palm Oil Futures are a touch firmer today, the contract sits ~4% above cycle lows seen on 1 June. The local docket is empty today, on Thursday we have May 3 Foreign Reserves before Industrial Production crosses on Friday.
• The SGD NEER (per Goldman Sachs estimates) is firmer this morning, we sit a touch off the top of the recent range. We now sit ~0.7% below the upper end of the band. USD/SGD is ~0.1% lower this morning, last printing at $0.1.3470/80 as broader USD trends continue to dominate flows. May Foreign Reserves is the only data of note today, there is no estimate and the prior read was $312.01bn.