CNH Weakens Amid Fresh Property Concerns

USD/Asia pairs have been mixed today, although the USD has still been supported on dips for the most part. USD/CNH rebounded amid fresh property woes for China. FX stability remains a focus for the South Korean authorities, while IDR hasn't seen much follow through support after yesterday's surprise rate hike.

• CNH: USD/CNH shrugged off a noticeably stronger than expected CNY fixing, with onshore equities weaker, particularly in the property sector. This follows fresh reports of corruption crackdowns in the sector. USD/CNH dipped towards 6.8550 post the fix but rebounded from here and edged above 6.8800 before selling interest emerged. We last tracked at 6.8730.
• KRW: Spot USD/KRW was lower in early trade, but got dragged higher by a weaker CNH trend. FX levels remain in focus with South Korean President Yoon stating FX volatility was on the rise. Dips below 1340 are supported but the pair hasn't tested resistance above 1345 today.
• IDR: The rupiah has weakened anew amidst risk aversion, despite catching a bid yesterday as Bank Indonesia delivered a surprise 25bp hike to the 7-Day Reverse Repo Rate. Spot USD/IDR has added 25 figs to last trade at IDR14,863. The central bank will also undertake an Operation Twist-style measure to stabilise the rupiah. The Bank will sell more short-term gov't debt in the market, while buying longer dated bonds.
• THB: Spot USD/THB trades +0.04 at THB36.14, shrugging off overnight greenback sales. The minutes from the BoT's most recent monetary policy meeting provided few, if any, surprises. The MPC judged that gradual policy normalisation will be consistent with sustainable growth, even as one member called for faster tightening. Foreign investors bought a net $133.0mn in Thai stocks on Tuesday, marking the 13th consecutive day of net inflows.
• MYR: USD/MYR couldn't sustain early downside, with the pair moving up from 4.4840 to 4.4880. A weaker CNH has arguably not helped onshore sentiment. We remain below recent highs above 4.4900 for now though. A reminder that we will get an update on Malaysia's CPI inflation this Friday.