KRW & PHP Surge Against The USD, Firm Gains Elsewhere (ex CNH)

USD/Asia pairs are once again uniformly lower across the board, although CNH gains remain very modest. KRW (+1.9%) and PHP (+1.4%) have been the standouts, as regional risk appetite continues to recover in the equity space and local FX welcomes the lower US real backdrop. IDR has also performed strongly, up a further 0.60%. INR, along with CNH, has been a laggard.

• USD/CNH has drifted a little lower, but dips sub 7.3200 have been supported. The Caixin services PMI missed expectations but remained in expansion territory.
• 1 month USD/KRW is down a further 1.25% so far in Friday trade, last near 1316. Spot is up almost 1.9% against the USD. The 1 month NDF is now down through the 200-day EMA, riding the wave of positive equity sentiment amid hopes we have seen the last of the Fed tightening cycle. Early Sep lows in the 1 month around 1310 is the next possible downside target.
• USD/PHP has collapsed today back to fresh multi-month lows. After spending the pair few months wedged into the 56.50/57.00 region, we now track sub 56.00. This is a 1.40% PHP gain (as onshore markets were closed in the previous two sessions). A good chuck of this represents catch up to recent USD weakness, but the authorities may not mind a rebound in local FX to help curb imported inflation pressures.
• The SGD NEER (per Goldman Sachs estimates) is little changed in early trade this morning and sits a touch off the touch of recent ranges. The measure sits ~0.5% below the top of the band. USD/SGD fell ~0.3% yesterday breaching the 20-Day EMA ($1.3676) as the greenback extended its post-FOMC losses. In early trade this morning we print at $1.3640/45. S&P Global PMI ticked lower to 53.7 in October from the prior read of 54.2 marking the 8th consecutive month of expansion.
• The Rupee has opened dealing little changed from yesterday's closing levels and last prints at 83.23/24. On Thursday USD/INR could not sustain its fall through the 20-Day EMA (83.2184) which was seen in early trade as onshore participants digested Wednesday's FOMC meeting. The pair ticked away from session lows as Oil held onto its gains in Asia. S&P Global Services PMI ticked lower in October printing at 58.4, the prior read was 61.0.
• USD/IDR sits back in the 15765/70 region, down sharply from recent highs. IDR is more than 0.50% stronger so far today in spot terms, up over 1% in the past week. The pair is back sub the 20-day EMA (~15792). We haven't been sub this level for a number of months. Outside of the continued risk-on cross asset supports for IDR today, it is also noteworthy comments made by FinMin Sri Mulyani Indrawati "Going forward, rupiah exchange rate stabilisation measures will be strengthened so that it is in line with its fundamentals and it supports efforts to control imported inflation," she said at a press conference (RTRS).
• The Ringgit is steady in early dealing, ranges are narrow on Friday morning with little follow on moves. Yesterday USD/MYR held onto its early losses finishing trade down ~0.5% breaching the 20-Day EMA (4.7524) as the dovish tilt from the FOMC meeting pressured the USD. A reminder that yesterday the BNM held the Overnight Policy Rate steady at 3.00%. The bank noted that the current OPR level is supportive of the economy and is consistent with the current assessment of the inflation and growth prospects.