KRW & TWD Underperform Amid Tech Equity Headwinds

USD/Asia pairs are mostly higher, albeit to varying degrees. Losses have been prominent in KRW and TWD amid fresh tech equity headwinds. USD/THB has rebounded sharply, partly due to catch up with Thursday's USD rebound, but political uncertainty also continues. Next Monday we have Singapore CPI on tap and then on Tuesday the BI decision in Indonesia. No change is expected.

• USD/CNH couldn't sustain an earlier downside move sub 7.1650. We last sit slightly above Thursday NY closing levels, tracking close to 7.1780. The CNY fixing was again on the firm side of expectations, whilst further stimulus talk for consumption didn't have a lasting positive impact on sentiment. Earlier highs were just above 7.1800.
• 1 month USD/KRW has continued to push higher, last above 1282, which is fresh highs for the session and around the 20-day EMA. Onshore equities have been resilient but this hasn't helped the won much. Offshore investor outflows have been noticeable. Earlier the first 20-days trade data for July showed softer export momentum compared to June.
• Spot USD/TWD sits close to session highs, last near 31.22. This is around +0.45% above Thursday closing levels. We are above all key EMAs (the 20-day is the nearest around ~31.07). Early July highs sit around the 31.40 region, while mid-month lows come in around the 30.83 level. The 1 month NDF sits below spot, last at 31.18. TWD is seeing negative spill over from weaker TWSE levels, although the index has been steadily recovering from earlier lows (last -0.80%). TSMC was weaker after the company cut its revenue guidance and delayed a start to its US project.
• The Rupee is a touch weaker in early trading on Friday, USD/INR sits at 82.02/05 ~0.1% firmer from yesterday's closing levels. Strong inflows by foreign investors into Indian equities have continued with $636mn net inflow through the week to Wednesday. India, the worlds biggest rice exporter, has banned shipments of non-basmati white rice to maintain domestic prices at comfortable levels. A reminder that the data calendar is empty until 31 July when June Fiscal Deficit INR and Eight Infrastructures Industries Index cross.
• The Ringgit is pressured in early dealing as it continues to pare its post US CPI gains last week. USD/MYR is up ~0.2%, and last prints at 4.5505/45 and sits ~1% above its low printed last Thursday post the US CPI print. Bulls target the low from 13 July (4.6237). Bears first target the 200-Day EMA (4.4990). The June Trade Balance printed yesterday, the surplus was firmer than forecast at MYR25.81bn vs MYR16.65bn expected. Looking ahead; on Monday June CPI is due. CPI is expected to tick lower to 2.4% Y/Y from 2.8% Y/Y.
• The SGD NEER (per Goldman Sachs estimates) is little changed in early dealing, the measure sits a touch off cycle highs and is ~0.2% below the top of the band. USD/SGD rose ~0.2% yesterday, unwinding early losses as the pair found support ahead of the $1.32 handle as broader USD trends dominate flows on Thursday. We sit unchanged from yesterday's closing levels in early trade and USD/SGD last prints at $1.3260/70. Looking ahead, the next data of note is Monday's June CPI print, the headline print is estimated to come in at 4.4% Y/Y and the prior readings were 5.1% Y/Y (headline) and 4.7% Y/Y (core).
• USD/THB is back to 34.30, +0.90% firmer for the session. Dips in the pair sub 34.00 have been supported in recent sessions. As expected, Move Forward has stepped aside for Pheu Thai to form government.