USD/Asia Pairs Down From Earlier Highs

Asian FX has been mixed today. We have seen a sharp reversal in USD/CNH, down around 0.5%, SGD and PHP are also off recent highs. THB and IDR continue to underperform though.

• CNH: USD/CNH tracked above 6.7800 earlier, with the USD/CNY fixing neutral rather than leaning against depreciation pressures. However, this proved to be the top and we fell back through 6.7500 as the session progressed. There didn't appear to be a fundamental catalyst for the move. China equities generally remain under pressure (although Hong Kong tech shares have rebounded), while the onshore covid trend deteriorates. Discussions between high level US and China officials was a positive though, which may lead to a call between US President Biden and China President Xi.
• KRW: 1 month USD/KRW has oscillated around the 1290 level today. Spot USD/KRW opened higher but found selling interest above 1290. Korean officials again warned about volatility in financial markets. The Kospi was weaker today but at this stage is down less than 1%, so not as bad as feared based off overnight tech weakness.
• INR: USD/INR is drifting higher in early trading. We are at 78.06, down from yesterday's highs of close to 78.30. Likely RBI intervention curbed yesterday's spike. Note wholesale prices data is due later today. The market looks for a 15.3% YoY print, versus 15.08% previously.
• IDR: Spot USD/IDR extends its bullish run as hawkish Fed repricing rendered U.S. Tsy yields sky bound early this week. We are back above 14700, although down from opening highs above 14750 (last 14720). Indonesia trimmed the maximum export levy on crude palm oil to $200/ton from $375/ton, effective from June 14.
• PHP: USD/PHP is pull back a touch, with the pair down to 53.22, after spiking close to 53.40 in early trade. OCTA Research warned that COVID-19 situation in the National Capital Region is escalating to "moderate" risk amid a steady rise in new cases. But the Department of Health said Metro Manila will not yet be promoted to Alert Level 2, which would entail stricter virus countermeasures, but such decision might be taken if cases continue to rise.
• THB: USD/THB is up higher today, up a further 0.40% to 34.97. This is fresh 4 year highs. Surprisingly hawkish comments from BoT Gov Sethaput yesterday, who said that "too slow a rate hike is not good" in an apparent departure from previously cautious stance on tightening, has failed to offset the impact of piling hawkish FOMC bets.