Little Follow Through USD Weakness Post Caixin PMI Beat, INR Strengthens

USD/Asia pairs have traded in a mixed fashion today. USD/CNH tracked lower post the Caixin PMI beat, but dips towards 7.1000 were supported. INR has rallied, but otherwise most pairs have respected recent ranges. Tomorrow, South Korea Q1 GDP revisions and May CPI prints are due, but the data calendar is empty otherwise.

• USD/CNH highs were near 7.1270 prior to the Caixin PMI, but we sunk back to 7.1020 post the data. We have steadily recovered back above 7.1150 since, but a better tone to onshore equities post the lunch time break may aid sentiment at the margins. The CNY fixing was neutral.
• 1 month USD/KRW got to lows near 1316, but dips once again were supported, the pair last back closer to 1320. Export growth was close to expectations, remaining deeply negative in y/y terms, but the trade deficit position continues to improve.
• USD/TWD is relatively steady, spot last near 30.71. Onshore equities have faltered somewhat as the recent surge higher in tech cools. The Taiwan PMI also slipped back to 44.3 in May from 47.1 in April.
• USD/INR is tracking lower in the first part of trade, the pair off 0.40%, last in the 82.45/50 region, slightly above session lows. This is fresh lows from mid May. Note the 50-day and 100 day MAs sit in the 82.20/25 region, while below that is the 200-day MA back at 81.795. On the topside, recent highs sit close to 83.00. The May manufacturing PMI rose to 58.7 from 57.2, keeping the recent run of better data outcomes going.
• USD/THB has tracked recent ranges, last sitting near 34.75/80, while USD/PHP is currently at the 56.20 level.