Mixed End To The Week, Despite Softer USD Against The Majors

USD/Asia pairs have been mixed, this comes despite a generally softer USD tone against the majors. USD/CNH moved lower but there wasn't much follow through, likewise for USD/KRW. THB and PHP have held onto gains, while IDR remains a laggard. Next Monday, the focus will be on China's LPR announcements, although no change is expected. South Korea's first 20-days of trade data for November also prints.

• USD/CNH slipped to the low 7.1200 region, but has since recovered towards 7.1400. Positive covid vaccine headlines for HK looked like a catalyst but there was much follow through. Bloomberg also notes reports of USD selling in the morning session from state banks, which may have been a catalyst as well.
• USD/KRW was softer at the open, as positive equity sentiment spilled over into the FX space. We couldn't get below 1336 though, and we now sit back above 1340. North Korea's ICMB test has taken the shine off South Korean assets today.
• Spot USD/IDR has added 30 figs and changes hands at 15,693, with bulls looking to force their way through Nov 4 high of 15,750. Bears take aim at Nov 11 low/50-DMA at 15,393/15,372. Bank Indonesia raised the 7-Day Reverse Repo Rate by 50bp Thursday, which was the base-case scenario of most analysts. The decision was described as a "front-loaded, preemptive and forward looking step," signalling the central bank's resolve in containing inflation as quickly as possible.
• Spot USD/PHP trades -0.07 at 57.305. Bangko Sentral ng Pilipinas delivered the expected 75bp rate hike Thursday, which was preannounced well ahead of the meeting. The 2022 inflation projection was raised to +5.8% Y/Y from +5.6% at the September monetary policy review, with the 2023 forecast raised to +4.3% from +4.1%.
• BoT Asst Gov Piti hinted that the central bank will stick to its "measured and gradual" approach to monetary tightening. Outflows of foreign capital from Thailand's equity market continued Thursday, with offshore investors shedding a net $92.57mn in Thai stocks, the largest net drain since Sep 15. Still, USD/THB is slightly lower for the session, last -0.04 figs at 35.85.