Firms Amid Broader Dollar Pullback, China PMI & South Korea Trade Out Over The Weekend

Asian markets have been impacted by holidays today (China & South Korea out). The broader USD pull back has aided PHP, THB and MYR, which have been the strongest performers in the session to date. Note tomorrow we get the official China PMI prints for September. On Sunday South Korean September trade figures are out.

• USD/CNH dipped on the surging HK equity backdrop, but we didn't see much follow through. The pair got to low 7.2800 levels before rebounding. We sit back at 7.2950 in latest dealings. A reminder that China markets are closed today and through next week for the Golden Week holiday. We still get official PMI prints for tomorrow though.
• 1 month USD/KRW is slightly lower, but has been quiet given onshore markets remain closed. FTSE Russell has kept KTBs on the watch list for possible inclusion in the global bond index next year.
• BoT Governor, Sethaput Suthiwartnarueput, has stated it is now appropriate to pause in terms of interest rates. He stated that the key policy rate is at neutral and that if growth and inflation evolve as expected, rates can stay where they are. USD/THB sits off recent highs, last near 36.60. Lows for the session were near 36.50.
• USD/PHP sits comfortably away from the 57.00 resistance point, aided by a broader USD pull back and lower oil prices. Current levels near 56.70 remain close to the mid-point of the range seen in September. We are sub the 20-EMA, which sits at 56.75. Early September lows were near 56.50. We still await bank lending data for August, but most focus will rest on the Sep CPI print next Thursday. The market consensus, at this stage is for a 5.3% y/y print, unchanged from August (0.4% m/m is the monthly projection).
• The Rupee has opened dealing a touch firmer on Friday as broad based greenback flows dominate in early trade. USD/INR sits at 83.05/10. Technically the pair remains in an uptrend, bulls target the high from 20 October 2022 (83.2975). Bears immediate focus is the 83 handle which intersects with the 20-Day EMA (83.05). On tap today we have the August Fiscal Deficit, there is no estimate. Also due is the Eight Infrastructure Industries survey.
• USD/MYR has followed the broader USD move this morning falling ~0.4% as the pair re-opens after yesterday's holiday and is ticking away from Wednesday's 2023 high. USD/MYR has fallen below the 4.70 handle to sit at 4.6885.
• The SGD NEER (per Goldman Sachs estimates) sits a touch off yesterday's cycle highs, holding a narrow range this morning. We now sit ~0.3% below the top of the band. Broader USD trends continue to dominate flows for USD/SGD, the pair fell ~0.6% yesterday as risk sentiment improved through Thursday's session. In early dealing today we sit close to the 20-Day EMA ($1.3635).