Little Respite

USD/Asia pairs are higher once again. USD/CNH touched above 6.8500, as local banks cut the 5yr LPR more than expected. The won is off by more than 1%, with USD/KRW making fresh highs back to 2009.

• CNH: USD/CNH briefly spiked above 6.8500 following the LPR cut announcement. This took the pair above Friday night highs, with the stronger than expected CNY fixing only providing fleeting relief. China equities are higher though on hopes the 5yr LPR cut will aid the property sector.
• KRW: Spot USD/KRW is more than 1% higher, breaching the 1340 level. The is fresh highs going back to 2009. Onshore equities are weaker, off by over 1%. The first 20 days of trade data for August showed a picture of slowing external demand and a still very wide trade deficit.
• INR: The rupee weakened in early trade, but USD/INR ran out of momentum ahead of 79.90. The pair was last back at 79.84. The 1 month NDF remains above 80.00. Lower oil prices are providing limited relief so far. Onshore equities are also unwinding some of the recent bounce, off -1% in the first part of trading.
• IDR: Spot USD/IDR has crept higher amidst risk-off backdrop and last trades +34 figs at IDR14,872. A break above the nearby 50-DMA (IDR14,889) would bring Aug 4 high of IDR14,939 into view. Bank Indonesia will deliver its monetary policy decision tomorrow. Most analysts expect the central bank to stand pat on interest rates.
• PHP: The Philippine peso has been offered amid weakness in the broader Asia EM FX space and an apparent moderation in Bangko Sentral ng Pilipinas' rate-hike plans. Spot USD/PHP deals +0.135 at 56.080, with bulls looking for a move towards record highs of PHP56.500. Bears keep an eye on the 50-DMA, which intersects at PHP55.412.
• THB: Spot USD/THB has crossed above its 50-DMA and last deals +0.27 at 35.945. The back end of last week brought some positive news for Thailand's critical tourism industry. The government said it will allow foreign visitors to extend their stay, while hotel operators signalled the intention to boost investment budgets. Later this week, customs trade data will be published Wednesday.