CNH outperforms

Asian FX has been on a more positive footing as the session progresses, although gains have not been uniform. CNH has outperformed, while IDR and INR have been laggards.

• CNH: USD/CNH pushed higher in early trade, nearly touching 6.7100 on negative Covid headlines. Shanghai will lockdown two districts this weekend for mass testing. The USD/CNY fix was lower than expected though, which helped temper upside pressures. The bumper trade figures helped sentiment further, along with broad based USD weakness. USD/CNH has found some support below 6.6800 as onshore equity sentiment has remained weak (CSI 300 off 1%).
• KRW: 1 month USD/KRW has reversed from earlier highs above 1260. We now sit back at 1254. Lower USD/CNH levels have helped, while the Kospi is only down a touch, outperforming the tech sell-off from overnight. Foreign investors have still been large sellers of local equities though, -$403mn so far today.
• INR: The rupee has seen little reprieve from softer USD sentiment elsewhere. Softer local equities and higher oil, with Brent almost at $124/bbl are clear headwinds. Spot USD/INR is drifting higher, but is yet to break above 77.80.
• IDR: Spot USD/IDR is higher, while the 1 month NDF was last +52.5 figs at 14573. With covid cases creeping higher, the government announced mobility restrictions will remain in place and that it won't rush to the endemic stage. Bank Indonesia's consumer confidence gauge improved to 128.9 in May from 113.1 prior.
• PHP: USD/PHP has moved away from earlier highs, with spot back to 52.93. The Philippines' trade deficit moderated to $4.773bn in April from $5.007bn prior as annual growth in both imports and exports was slower than expected.
• THB: USD/THB pushed above 34.55 in early trade, but we are now back to 34.50. Thai consumer confidence slipped to 40.2 from 40.7. The central bank is getting closer to tightening policy, but this only provided brief relief for THB late yesterday.