Mixed As Risk On Battles Greenback Bid

The greenback regained some poise in thin Asia-Pac trade, offsetting general risk on mood after Wall Street hit a record high.

• CNH: The PBOC fixed USD/CNY at 6.4845, 8 pips below sell side estimates and a third straight lower fix, a rarely seen occurrence amid the PBOC's unspoken preference for a weaker yuan. USD/CNH is higher, up 65 pips at 6.4850 as tensions simmer between the US and China.
• SGD: Singapore dollar is weaker, giving up ground after initially moving below 1.34. The outlook is positive for SGD after the latest Monetary Authority of Singapore forecasts. 2021 GDP forecast was lifted to 5.8% from 5.5%.
• TWD: Taiwan dollar is stronger, USD/TWD still above 28.00. Markets will watch to see TWD moves now that Taiwan is at risk of being labelled a currency manipulator.
• KRW: Won is stronger, playing catch up after underperformance earlier this week. Equity markets have risen strongly, even as the government extend social distancing measures for two weeks.
• INR: The rupee is stronger, markets are focused on CPI data later on where risks are to the upside, as illustrated by a jump in interest rate swaps. Industrial production data will also be released.
• IDR: Rupiah is stronger after reopening from a public holiday yesterday Reuters reported that Indonesia's new sovereign wealth fund is looking into investments in dozens of projects, including toll road concessions worth $2.6bn.
• MYR: Ringgit is weaker, industrial output rose 1.2% Y/Y in Jan, faster than expected (1.0%) but slower than in Dec (1.7%), as growth in the m'fing sub-index outweighed losses in the mining & electricity sub-indices.
• PHP: Peso is stronger, trade deficit widened more than exp. to $2.421bn in Jan from December's $2.149bn. The headline figure was underpinned by a deeper than forecast fall in imports. Pres Duterte said he is mulling reopening the economy within several weeks.
• THB: Baht has lost ground during the session, PM Prayuth and some of the cabinet members who were due to receive vaccinations with the AstraZeneca jabs have postponed their appointments, in the wake of the decision by some European countries to halt inoculations with the AstraZeneca product.