Mixed Session Ahead Of LNY

Thin volumes and limited news flow ahead of LNY, with Taiwanese markets already closed for the holiday. The greenback attempted to stage a recovery early on, but the move quickly ran out of steam.

• CNH: The yuan has weakened since the fix, USD/CNH taking back a handful of pips from the sharp decline seen yesterday. The PBOC fixed USD/CNY at 6.4391, 13 pips above sell side estimates. Data earlier showed CPI fell while PPI eked out some small gains.
• SGD: Spot USD/SGD punched through the 1.33 handle yesterday, the pair has held closing levels in Asia amid lack of news flow. 1-month implied volatility rose after the 100 pip move lower yesterday.
• KRW: Won is higher for a third session, there is speculation that traders are exiting short positions ahead of LNY. Data earlier in the session was weak, unemployment rose to 5.4% from 4.5% expected.
• INR: Rupee is flat again on Wednesday after an inside day yesterday, market participants will look to the RBI OMO operations today for direction.
• IDR: Rupiah hit its best levels in a month after Indonesia eases travel restrictions, and palm oil soars.
• MYR: Ringgitt strengthened, Malaysia will start easing its movement restrictions today. Retail businesses will be allowed to re-open and restaurant dine-ins will be permitted, subject to certain limits.
• PHP: Peso hovered around neutral levels for the session. Markets participants are in wait and see mode as the government considers relaxing coronavirus measures, while tomorrows rate announcement is also in focus.
• THB: Baht is stronger, holding yesterday's gains. Late doors on Tuesday the Thai Cabinet gave a nod to an infrastructure spending package.