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Firmer Bias Outside Of CNH

ASIA FX

Outside of USD/CNH, the USD/Asia tone is offered, in line with the majors, albeit with a lower beta with respect to such moves. A mostly positive regional equity tone is helping sentiment.

  • 1 month USD/KRW is in 1308/09 region. Session lows rest at 1306.7. Local equity sentiment is better, while offshore equity inflows continue (+$77mn so far). Won bulls will target a test of the 20-EMA near 1303.
  • Spot baht is playing catch up, rallying 0.50% to 34.80/85 at this stage. This followed yesterday's sharp drop on rate cut speculation (we closed at 35.03). A gain today would be the first since the end of last year.
  • USD/MYR spot is back towards 4.6400 but remains within recent ranges, likewise for USD/SGD spot, which is back to 1.3275/80.
  • Both spot and 1 month USD/IDR are holding above 15500 at this stage. US real yields have moved off recent highs but only by a few bps.
  • USD/PHP spot sits near 55.70, little changed for the session so far.

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