A Mixed Session To Date, Despite A Firmer USD Elsewhere

A mixed session for USD/Asia pairs so far. USD/CNH remains rangebound, while USD/KRW is back above 1310 as equity sentiment softens. THB has seen some relief from BoT rhetoric, while USD/INR is holding below 80.00. These moves come despite a firmer USD against the majors.

• CNH: USD/CNH remains range bound. We haven't drifted too far away from the 6.7750 level. The CNY fixing was slightly weaker than expected, while onshore equities have struggled to gain any positive traction. CNH is outperforming broader USD strength though.
• KRW: USD/KRW has pushed back above 1310, in line with broader USD strength and a slightly softer tone to local equities. 1305/06 remains the recent base for now. Earlier, the PPI printed close to 10% YoY, highlighting underlying inflation pressures.
• INR: USD/INR is holding below 80.00, with onshore equities opening slightly higher. This week has seen just over $1bn in net inflows to local equities, bringing month to date flows almost back to flat.
• IDR: The rupiah went offered as Bank Indonesia kept its 7-Day Reverse Repo Rate unchanged late yesterday. More liquidity will be withdrawn though, Governor Warjiyo said the central bank will sell off ~IDR70tn of short-term government bonds to accelerate the absorption of excess liquidity. USD/IDR is down slightly today to 15023, versus yesterday's close of 15033.
• THB: Spot USD/THB nudged away from session highs as BoT Gov Sethaput dialled up the hawkish overtones in his rhetoric, pointing to the need to adjust monetary policy "near the normal level from super accommodative approach." We last traded 36.875, versus an earlier high above 36.91.
• SGD: USD/SGD is back above 1.3900, after dipping below this level late in NY trading. The SGD NEER continues to push higher though amidst broad USD strength. Next Monday's CPI data will be eyed, although most economists already expect a further tightening from the MAS at the October meeting.