USD/CNH Trying To Break 50-Day MA, PHP Depreciates Further

Most USD/Asia pairs are lower, in line with the risk on mood presented by equities. USD/CNH remains is trying to break below its 50-day MA though, while PHP continues to depreciate.

• CNH: USD/CNH has once again found support sub the 6.6800 level. Note the 50 day MA comes in at 6.6801 and we haven't been meaningfully below this level since mid-March. The pair is trying to break lower though. The USD/CNY fix came out in line with expectations. China/Hong Kong equities continue to push higher, although the rest of the region (for the most part) are also seeing positive gains as well.
• KRW: USD/KRW spot is down 1.3% at this stage to the 1282 level. Onshore equities continue to recover, with the Kospi up a further 2% today, while the Kosdaq has gained over 3%. The won can benefit from a further recovery in equity market sentiment.
• INR: USD/INR spot has opened back below 78.30, modestly down on last week's close. The 1 month NDF is steady at just under 78.50. Some slight loss of momentum for INR as oil has rebounded. Onshore equities have opened up +1% though.
• THB: An anaemic recovery attempt in spot USD/THB has been capped by comments from the BoT's quarterly analyst meeting, which stressed the need for timely adjustment of monetary policy to anchor inflation expectations. The BoT said that the baht may strengthen in the medium term as economic recovery gains traction. USD/THB is back sub 35.45, versus a recent peak just above 35.55.
• PHP: USD/PHP dips continue to be supported. We have pushed above 55.00, last at 55.13. BSP has ruled out a 'line in the sand' from a currency defence standpoint. The twin deficits continue to weigh.
• IDR: USD/IDR dipped back below 14800 before support emerged, last at 14801. The currency has benefited from better risk appetite and lower Fed tightening expectations. Onshore, the Finance Ministry said it was postponing the implementation of a new carbon tax scheduled to enter into force next month.