Intervention Curbs USD/KRW Move Towards 1400

Once again USD/Asia pairs are mixed. The main focus has been on USD/KRW, which has fallen post intervention. USD/CNH has been range bound around 6.9750. Likewise for USD/TWD and USD/SGD. Elsewhere, IDR has outperformed, following a trade data beat. THB remains weak. Later, the focus is on the Xi-Putin meeting (see this link for more details), then tomorrow China August activity data is out (see this link). Also due is South Korea trade prices and Singapore export figures.

• USD/CNH has respected recent ranges, last at 6.9770. The CNY fixing once again much firmer than expected. The MLF rate was left unchanged as expected. The focus is on the upcoming Xi-Putin meeting, then tomorrow we get activity data for August.
• USD/KRW is off highs of close to 1398, following reports that the authorities have sold dollars to curb the won's rise. The pair has found some support ahead of 1390 (last 1392.50).
• USD/TWD (last just under 31.10) and USD/SGD (1.4060) have been rangebound.
• USD/IDR is back under 14900, last 14883. The trade surplus was firmer than expected at $5.76bn for August, versus $4bn expected. The parliamentary budget committee endorsed setting the average inflation target at +3.6% Y/Y and the rupiah target at IDR14,800 in Budget 2023. The targets are higher than those proposed by Pres Widodo last month (+3.3% and IDR14,750 respectively).
• USD/INR is rangebound, the pair edging back above 79.50. Onshore equities are around flat so far. Yesterday's wholesale prices came in slightly weaker than expected (+12.41% y/y, versus a 13.00% y/y estimate).
• USD/THB is pushing up towards 37.00 (last 36.75). Offshore investors sold a net $33.4mn in Thai equities Wednesday, the second consecutive day of outflows. Recovery in foreign demand for Thai stocks that began in Jun has seemingly run its course.