CNH & KRW Both Gain 1% Against The USD

All USD/Asia pairs are lower today, with CNH, KRW and TWD leading the way.

• CNH: USD/CNH quickly broke through the Friday lows as regional equity markets strengthened. Reduced covid restrictions in Beijing and Shanghai and further stimulus, announced over the weekend, has buoyed sentiment. China will also open its exchange-based bond market to some offshore investors from June 30th of this year. The pair has dropped nearly 1% since closing levels last week (last around 6.6600), with eyes on a test of 6.6500.
• KRW: USD/KRW spot has followed USD/CNH lower, dipping a further 1% to be sub 1242. We are now below the 50-day MA for the first time since late February. Broadly positive sentiment in equities also helped.
• INR: USD/INR has opened weaker in early trade, in line with the broader USD/Asia trends. Support was seen sub 77.50, with moves above 77.65 likely to draw intervention risks. With Brent crude above $120/bbl the rupee will struggle to outperform the regional trend.
• IDR: Spot USD/IDR has faltered amid broad-based greenback weakness, with Indonesian headline flow offering little of real note. Bears looking for a dip through May 11 low of IDR14,525 before taking aim at the 50-DMA (IDR14,431).
• PHP: Spot USD/PHP is a little above earlier lows, last tracking close to 52.26. Sensitivity to oil moves could see it underperform this period of USD weakness. BSP Governor-in-waiting Medalla told Bloomberg that he is "on the same page" as outgoing Governor Diokno when it comes to the prediction that another rate hike is likely next month. Bangko Sentral will hold its next monetary policy meeting on June 23.
• THB: USD/THB has dipped lower, around 0.25% below last week's close to be close to the 34.05 level. Earlier, Thai industrial output figures were a little weaker than expected (+0.56% YoY versus +1.00% expected).
• MYR: USD/MYR is back sub 4.3700. Higher oil and a stronger CNH helping. FinMin Zafrul said Malaysia's strong economic fundamentals and prudent FX policies will help the ringgit recover from recent depreciation caused by a number of "temporary factors," such as continued tightening of global liquidity and China's weakening growth prospects.