KRW Outperforms, Tight Ranges Elsewhere

USD/Asia pairs are mixed today ahead of key event risk in the US tonight. KRW is the main outperformer, along with IDR, albeit to a lesser extent. THB is lagging, along with CNH.

• CNH: USD/CNH hasn't strayed too far away from 6.8600. The pair dipped following another stronger CNY fixing but this proved to be short lived. 6.90 calls in USD/CNY, expiring at the end of August may be lending support. While onshore China equities have having close to a flat close at end the week. The broad consensus is that this week's fresh stimulus measures will not be enough to turnaround the growth outlook in the near term.
• KRW: The won has outperformed the broader trend in USD/Asia pairs today. The pair is testing sub 1330, with higher onshore equities helping, although a bigger driver is the rhetoric from South Korean authorities around one sided/herding behaviour in FX markets.
• INR: USD/INR remains sub 79.90 for now tracking within recent ranges, while the 1 month NDF sits above 80.00. Onshore equities are firmer (+0.70%), while bond yields are down on reports J.P. Morgan is consulting with investors around including Indian bonds in one of its main indices. The 10yr is off by 6bps to 7.23, although the trend elsewhere is generally for lower back end yields.
• SGD: USD/SGD has added 16 pips, supported by its 50-DMA. The pair last deals at SGD1.3902, with data on local industrial production eyed later today. Regional currencies (IDR, MYR, SGD) have been the only ones to post weekly gains against the greenback but only the rupiah has managed to extend them today.
• IDR: The rupiah is slightly firmer against the USD. USD/IDR was last at 14818, down 5 figs for the session. The government was set to submit a report on fuel price hike to President Widodo today, which means Jokowi may announce his decision on the matter imminently. The details will matter for Indonesia's inflation outlook.
• THB: USD/THB is pushing higher, back to 35.90, +0.20% above yesterday's closing levels. Sentiment has been hit by a wider than expected trade deficit for July. The figure printed at -$3.66bn (-$1.593bn expected), as exports disappointed. Political risk remains under scrutiny this week as pressure is growing on Prayuth Chan-o-cha to step down as Defence Minister after the court suspended his as Prime Minister pending clarification of his term limit.