KRW & THB Weaken, CNH Outperforms

Most USD/Asia pairs are higher, albeit to varying degrees. USD/CNH has bucked the broader trend and sits slightly lower, unable to break above 7.2500. The won and the baht have seen the sharpest falls in spot terms. Regional equity sentiment is weaker, led by Hong Kong. Tomorrow, we have the South Korean PPI and business sentiment up first. Later on, the BI decision is due with no change expected by the consensus.

• USD/CNH looked set to test above 7.2500, while spot onshore pushed above 7.2400. However, sentiment has stabilized since then. USD/CNH last around 7.2430/40. The earlier USD/CNY fixing rose modestly but was still the highest result since late Feb this year. The weaker HK/mainland equity tone is not helping. Recent data suggested strong capital outflow pressures in April, which is likely weighing in the background, although it may also be keeping the authorities on gaurd against fresh depreciation pressures.
• 1 month USD/KRW got through Monday highs, pushing to a high of 1365. We sit slightly lower in recent dealings last near 1362. We had earlier resilient export figures for the first 20-days of May, but his hasn't done much for sentiment. The weaker regional equity tone, coupled with lower JPY and CNY levels are working the other way so far today.
• USD/THB has rebounded sharply so far today. The pair last near 36.30. Intra-session lows from Monday trade came in at 35.845 post firmer than expected Q1 GDP results. Broader USD sentiment has weighed on the baht and we have seen some recent outperformance unwound today. The Thailand government is considering a supplementary budget soon (up to 122bn baht) to aid the economic backdrop.
• USD/PHP has risen above 58.00 for the first time since 2022. This figure level was eyed as a potential resistance point (particularly from an intervention standpoint), so we may be seeing some technical/stop related buying after piercing this level. The pair was last 58.10/15, 0.40% weaker in PHP terms.
• USD/IDR is around 0.30% firmer. The pair was last near 16020, slightly off session highs. Again, this is well within May ranges to date, but IDR is displaying reasonable beta with respect to USD/Asia moves.