Gains Across The Board, CNH Lags

Asian FX is stronger across the board today, with the exception of CNH, which has lagged and sits unchanged against the USD. Strong gains have been evident for KRW, THB, PHP and INR. FX in the region has outperformed the majors, with the DXY up close to 0.2% so far today.

• CNH: USD/CNH had a brief dip under 6.7500, but we back at 6.7520 now, unchanged for the session. China equities are higher, but aren't outperforming within a regional context. Note July trade data prints this Sunday.
• KRW: USD/KRW has broken lower, further catching up with the on-going improvement in local equities (up a further 0.90% today). Offshore investors have added nearly $1.6bn in local shares over the past 6 sessions. The 1 month NDF is eyeing a test of the late July lows around 1295.50 (currently at 1296.60)
• TWD: TWD FX is trading slightly firmer, with both USD/TWD spot and the 1 month NDF back below 30.00. Onshore equities have risen more than 2% today, supported by better tech sentiment offshore. Rhetoric around China's continued military exercises persists, but broader market fallout remains limited for now.
• INR: The RBI hiked rates by 50bps, taking the policy rate to 5.40%. This was above market expectations of a move to 5.25%. The RBI remains focused on withdrawing accommodation. INR is slightly firmer, with USD/INR dipping back under 79.00 post the decision from 79.10/15 prior.
• IDR: Spot USD/IDR is down -33 figs to 14900 currently. In line with a firmer sentiment elsewhere, while Indonesia's GDP data exceeded expectations as annual growth accelerated to +5.44% Y/Y in Q2 from +5.01% prior (versus +5.17% BBG consensus forecast). The quarterly jump of +3.72% also topped expectations (+3.47%).
• PHP: CPI data was the focus, which revealed a surprise acceleration in headline inflation. Price growth quickened to +6.4% Y/Y in July, the fastest pace since October 2018. Following the release of CPI data today, the central bank noted that it is prepared to take all necessary policy action to bring inflation toward a target-consistent path over the medium term. USD/PHP is down -0.70% to 55.215 so far today.
• THB: In Thailand CPI figures were mixed, with headline softer at 7.61%, versus 8.00% expected. Core was stronger though at 2.99% versus 2.63% expected. Almost all economists surveyed by Bloomberg already expect a 25bp rate rise, at next week's BoT meeting, with the sole dissenter calling for a 50bp move. USD/THB has slumped more than 1% today, to be back at 35.65.