USD Gains Slow

The USD has stayed on the front foot for the most part today, although gains are more modest compared to previous sessions. The South Korea authorities are more focused on speculative behaviour in FX markets, which aided the won, although it is unlikely to change trends. Coming up is the BI decision in Indonesia, with no change expected.

• CNH: USD/CNH has edged away from overnight highs. The pair is back below 6.8700, but has traded a tight range for the most part. Lower USD/KRW levels helped, but a slightly weaker than expected CNY fix curbed gains. Dips to the low 6.8600 region are being supported. Equities are weaker but are away from worst levels.
• KRW: Spot USD/KRW dipped as far as 1337, after the South Korean authorities stated that were monitoring speculative factors in the FX market. However, the pair has crept higher this afternoon, we are back above 1342. Onshore equities remain in the red, with the Kospi down close to 1%.
• IDR: Spot USD/IDR has climbed above its 50-DMA this morning and last deals +13.5 figs at IDR14,901 amid weakness in the broader Asia EM space. Majority (24/31) of economists in a Bloomberg survey expect Bank Indonesia to keep the 7-Day Reverse Repo Rate unchanged today, while the rest have forecast a 25bp hike. In light of recent rhetoric from the Bank's top brass, we expect policymakers to stand pat this time (see our full preview here).
• PHP: Overseas investors were net sellers of Philippine stocks on Monday for the first time in six days. They shed a net $6.1mn in local equities. The PSEi has extended yesterday's losses today to last trade ~1.6% lower on the day. USD/PHP is relative steady though around the 56.20 level today.
• THB: Spot USD/THB trades +0.014 at THB36.202 with pre-Jackson Hole Fed musings in the driving seat. Bulls look for an attack on THB36.945, a cycle high printed on Jul 21. Thailand's tourism arrivals were 1.124mn last month, according to an update from the Ministry of Tourism and Sports. Malaysian visitors topped the list. Looking further afield, Thailand's Customs Dept will publish monthly trade data tomorrow.
• MYR: Bullish momentum remains behind spot USD/MYR which printed new cyclical highs this morning. The pair last operates +28 pips at MYR4.4888 as hawkish Fed positioning ahead of the Jackson Hole symposium applied pressure to emerging Asian FX. Participants look ahead to the release of monthly CPI data this Friday.