Mixed As Greenback Holds Gains

The greenback held its gains while moving a narrow range ahead of the FOMC later this week, which saw some regional dynamics come into play.

• CNH: Offshore yuan is stronger. The PBOC fixed USD/CNY at 6.5029, 3 pips below sell side estimates. USD/CNH having a see-saw session, moving between minor gains and losses, last down 44 pips at 6.4935, having bounced off session lows at 6.4950, but is off session highs of 6.5040.
• SGD: Singapore dollar has strengthened, the jobless rate fell to 3.2% from 3.3% which has added fuel to the fire that the central bank may tighten later this year.
• TWD: Taiwan dollar is stronger, but USD/TWD still off yesterday's session lows around 28.12, and has weakened through the session.US President Biden will meet with Chinese counterparts later this week, one of the issues on the agenda is expected to be Taiwan. According to reports in Politico US officials are warning with increasing urgency that China could in the next few years invade Taiwan.
• KRW: The won strengthened through the session, the gain comes as new coronavirus cases drop. South Korea reported 382 daily new infections, in the 300s for the second day, as health authorities plan to unveil another set of restrictions in the greater Seoul area to sharply flatten the virus curve.
• INR: Rupee higher from the open, data yesterday showed the trade deficit narrowed more than expected. The trade deficit dropped to $12.62bn, the lowest since December thanks to a sharp drop in imports.
• IDR: Rupiah is flat, Bank Indonesia will deliver their MonPol decision on Thursday and virtually all analysts expect policymakers to leave the benchmark interest rate unchanged.
• MYR: Ringgit is weaker, Malaysia's daily count of new Covid-19 cases fell to the lowest level in three months on Monday, as the nation reported 1,208 infections. Health Min Adham Baba said that the statistic could fall to 500 by May if people comply with existing restrictions.
• PHP: Peso is marginally weaker, the Philippines has seen a fresh wave of Covid-19 infections, which prompted officials to reinstate some targeted restrictions.
• THB: Baht has strengthened, PM Prayuth has just received the first dose of the AstraZeneca Covid-19 vaccine in a launch of the vaccine rollout, after a local panel of experts said that the shot is safe.