Initial Gains Not Sustained

After strong starts most Asia FX weakened as China's CIBRC sounded warnings about asset bubbles.

• CNH: Offshore yuan weakened, the rate initially looked below 6.47 before reversing. The PBOC fixed USD/CNY at 6.4625, 10 pips above sell-side estimates. Markets await policy cues on the broader economy from this week's annual gathering of the National People's Congress.
• SGD: Singapore dollar is weaker, USD/SGD reversing all of its move lower yesterday. Markets look ahead to PMI data at 1300GMT/2100HKT.
• TWD: Taiwan dollar has weakened through the session after strengthening at the open, USD/TWD has still not managed to close below 28.00 with the central bank actively "smoothing" the market on the close. Manufacturing PMI helped support sentiment in the region.
• KRW: The won is broadly flat on the session, having given back all of its opening gains, the fall comes despite strong manufacturing PMI and industrial production data.
• INR: Rupee is weaker, led higher by USD. Bond yields have climbed and gold is lower which has sapped appetite for INR.
• IDR: Rupiah is weaker, FinMin Indrawati said Monday that Indonesia will waive VAT on new home sales and discuss relief measures for the embattled tourism sector, while the MNC Group Investor Forum kicks off today, with Dep FinMin Nazara, FinMin Indrawati & Econ Min Hartarto due to speak
• MYR: Ringgitt is flat, Monday saw PM Muhyiddin deliver a speech marking the first anniversary of his gov't. The head of gov't reiterated that a fresh election will be held as soon as the Covid-19 pandemic abates and pushed back against continued accusations of abusing power during the state of emergency.
• PHP: Peso was fairly resilient, currently flat. CNN Philippines reported that "cinemas and other establishments offering creative, arts, and entertainment activities in areas under general community quarantine would be allowed to reopen starting this Friday
• THB: Baht is weaker, the imprisonment of three ministers last week fuelled speculations about a potential cabinet reshuffle. PM Prayuth reasserted his authority over any personal nominations yesterday, noting that while coalition partners may present their proposals, he will have the final say on any changes.