Firmer JPY Aids Asian FX

Parts of Asian FX have rallied this afternoon, buoyed by firmer JPY levels, while UST yields edging away from earlier highs has helped at the margin as well. USD/CNH is back below 6.9700, while USD/KRW is around1390. There has been less follow through elsewhere though.

• For USD/CNH we had a fresh record in the CNY fixing relative to expectations. This did little to support CNH initially, but a firmer onshore spot open helped, while the stronger JPY has been the main driver this afternoon. Tomorrow the 1 yr MLF rate announcement is due. No change is expected to the 2.75% rate.
• Spot USD/KRW leapt early, but didn't break above 1395. Officials stated they will pull out 'all measures' to curb depreciation pressures. Some support is evident for spot around 1390.
• USD/IDR is away from highs for the session, last at 14913, still +0.40% above yesterday's closing levels. The 1 month NDF is well below overnight highs though close to 15000 (last at 14933). Indonesia's monthly trade figures will be published tomorrow. Trade surplus is expected to have moderated to $4.019bn in Aug from $4.220bn recorded in Jul.
• USD/IDR is away from highs for the session, last at 14913, still +0.40% above yesterday's closing levels. The 1 month NDF is well below overnight highs though close to 15000 (last at 14933). Indonesia's monthly trade figures will be published tomorrow. Trade surplus is expected to have moderated to $4.019bn in Aug from $4.220bn recorded in Jul.
• USD/PHP is at 57.125 currently, down from intra-day highs of 57.265. Philippine overseas cash remittances are expected to cross the wires in the coming day.
• USD/THB is over 1% higher to 36.65. The Cabinet approved touted relief measures for energy users during its weekly meeting Tuesday amid fears that inflation may remain higher for longer. Ministers also gave a nod to the planned minimum wage increases. The Thai top court will rule the PM's term limit case by September 30.