March 13, 2023 02:50 GMT
Firmer Across The Board, CNH Up ~ 1%
Asian FX is extending gains, amid broad USD losses, as US yields tumble to fresh lows (2yr to 4.36%, we were at 4.53% earlier). The ADXY is back near 101, +0.55% for the session. Goldman's call that the Fed won't hike in March has been responsible for the latest move lower in yields and broader USD softness.
- USD/CNH is down nearly 1%, last near 6.8700. We have pared losses somewhat, back near 6.8750, as new China Premier Li Qiang gives cautious remarks at press conference ('hitting 5% growth won't be easy') while 1 month USD/KRW has made fresh lows to 1305/06, also 1 % firmer (in won terms). USD/IDR spot is off by 0.5% to 15370/75, showcasing its sensitivity to US yield developments, although it is lagging higher beta moves.
- USD/THB continues to play catch up to the downside, now back to 34.50, -1.60% versus closing levels from Friday's onshore session. MYR is +0.50%, back under 4.5000, while USD/PHP is down to 54.80/85, also 0.50% firmer in peso terms so far.