KRW Leads Gains In Risk-On Trade, CNH Prints Best Levels In Four Months

Most Asia EM currencies outperformed the greenback owing to broader risk-on flows, with participants looking through simmering geopolitical tension on the Korean peninsula.

• CNH: Offshore yuan rallied to its best levels in four months, even as breakdown data from China's Q3 GDP report provided some underwhelming insights. China's real-estate and construction sectors contracted for the first time since the onset of the pandemic. Spot USD/CNH descended into the CNH6.4000 area, bringing this round figure into focus.
• KRW: The won was the best performer in the Asia EM basket as broader risk-on flows outweighed the latest missile tests conducted by North Korea. Japan's PM Kishida said that the DPRK launched two ballistic missiles into the East Sea, while JoongAng reported that the test may have been of submarine-launched projectiles.
• IDR: USD/IDR was happy to hold yesterday's range ahead of the announcement of Bank Indonesia's monetary policy decision. Policymakers are expected to stand pat.
• THB: The baht garnered some strength after Thailand reported its lowest daily count of new Covid-19 infections in three months. The Cabinet may discuss economic support measures today.
• PHP: The peso firmed along most regional peers. BSP Gov Diokno noted that policymakers do not see any changes to monetary policy settings through the rest of this year.
• SGD: USD/SGD retreated on the back of broader market impetus, reaching lowest levels in a month.
• INR & MYR: Markets in India & Malaysia were shut in observance of local public holidays.