Gains More Mixed, As Equity Rebound Pauses

Holidays have still disrupted markets in Asia Pac today (China and India out today). Sentiment has been mixed in the FX space, although there has been some outperformance compared to the majors, where the USD has looked firmer. Overall ranges in USD/Asia pairs have been modest though. Tomorrow the focus will be on South Korean FX reserves, along with Indian PMI prints. Still to come today is Singapore retail sales.

• USD/CNH started the day around the lows, but we have rebounded somewhat, pushing back into the 7.05/7.06 region, in line with softer EUR, GBP levels etc. Note the 20 day MA comes in at 7.0536, so this may act as a near term pivot point.
• USD/KRW has drifted back above 1420 in terms of the 1 month NDF, around +0.40% on NY closing levels. The Kospi rebound ran out of steam on foreign selling (-$198.3mn). The September CPI print was mixed, but is unlikely to deter a 50bps hike next week from the BoK next week.
• TWD has fared better. The 1 month USD/TWD NDF is back sub 31.50. Onshore equites are holding up well, +1.8% for the session.
• Spot USD/IDR has faltered and last deals -41 figs at 15,204, with bears looking for a deeper sell-off towards the 100-DMA, which kicks in at IDR14,862. USD/IDR 1-month NDF last +29 figs at IDR15,215, suggesting that the overhang pressure from after hours Tuesday has petered out. Indonesia's Health Min Sadikin said the government was starting discussion with the WHO about declaring an end to the COVID-19 pandemic and lifting all remaining restrictions.
• Spot USD/PHP trades +0.05 at 58.72, down from earlier highs, but operating in the vicinity of record highs located near 59.000. Headline inflation in the Philippines quickened to +6.9% Y/Y in September from +6.3%, in line with the median estimate in a Bloomberg survey, reaching the fastest pace since Oct 2018. The BSP said it "is prepared to take further policy actions" to bring inflation towards the +2.0%-4.0% Y/Y target range over the medium term.
• USD/THB has continued to retrace. The pair was last at 37.44, around 0.30% below yesterday's closing levels. September CPI was a little weaker than expected. It printed at 6.41% y/y (6.58% was expected), while core came in at 3.1% y/y, against a 3.20% forecast.