Dollar Weaker As USD/CNH Breaks Lower

USD/Asia pairs have traced lower today, with USD/CNH leading the way, albeit in holiday thinned markets. China, Hong Kong, Taiwan & Thailand have all been closed today.

• CNH: While onshore markets were closed today, USD/CNH gapped lower through previous support at 6.6500. This didn't appear fundamentally driven, although PBoC Deputy Governor comments from late yesterday implied the USD may have risen too far, which is likely to aided today's move. We currently sit just below 6.6250, up from the earlier lows of 6.6170.
• KRW: USD/KRW has remained heavy. Spot has slumped close to 1%, although there is some support sub the 1240 level. The 1 month NDF sits around this level. Korean equities have lagged today. Earlier CPI surged above markets expectations, heightening views that the BoK could hike by 50bps at the next meeting in mid July.
• INR: USD/INR opened lower, in line with the regional trend, but has seen USD demand emerge sub 77.50. The overnight rise in oil not helping, while the 1 month NDF has pushed back to 77.80, above the NY close by around 0.2% at this stage.
• IDR: The rupiah has remained on the front foot, carrying over positive sentiment from yesterday. Spot USD/IDR is down a further 0.33% to 14435. This is below the 50-day MA (14442) and back to fresh lows from late April.
• SGD: Singapore data printed better than expected. The May PMI rising to 59.4 from 56.7, while retail sales rose by 12.1% YoY versus 10.4% expected. SGD FX has been relatively subdued though, with USD/SGD unable to sustain a break below 1.3700, last at 1.3710.