KRW & TWD Underperform, IDR Rebounds

USD/Asia pairs are tracking higher, with KRW and TWD underperformers, while IDR has bucked the regional trend today and rebounded strongly against the USD.

• CNH: USD/CNH has pushed higher today, but only modestly, with offers still above 6.7100 for now. The fixing bias remains neutral, while the PBoC stated it would step up implementing prudent monetary policy. China equities have outperformed broader weakness seen throughout the region.
• KRW: USD/KRW has surged higher today, spot is back above 1253, +1.25% versus the previous close. This reflects some catch up given onshore markets were closed yesterday. The 1 month NDF is also 0.50% higher. The Kopsi is off by 1%, while the May PMI eased to 51.8 from 52.1 last month.
• TWD: USD/TWD has continued to recover after getting close to the 29.00 level recently. Spot is back to 29.38, around +0.38% on the day. Local equities are down a further 0.50%. Note yesterday offshore investors sold $372 of local equities.
• IDR: The rupiah has bucked the broader trend of a stronger USD. Spot USD/IDR is down to 14500, about 0.50% lower on the day. Positive headlines around palm oil exports, recovering tourism inflows and reported inflows into local bonds, have all seemingly helped.
• MYR: USD/MYR is back close to 4.4000 (last at 4.3942). Lower oil hasn't helped today, but we would be mindful of official rhetoric this close to the 4.4000 region. The authorities stated they will maintain existing price controls on chicken and chicken eggs. They also reaffirmed the live chicken export ban to Singapore.