Mixed Trends, 1 Month USD/KRW Testing 20-day EMA Resistance

USD/Asia pairs are mixed in the first part of Thursday trade. Overall ranges have been fairly tight, mirroring price action in terms of the majors. CNH is close to unchanged, while the won has weakened. Most other currencies sit a touch higher versus the USD. Still to come today is the BNM decision, no change is expected. Tomorrow the data calendar is relatively quiet, although we do get Indian IP figures later on.

• USD/CNH has stuck fairly close to the 7.2300 level, although moves above this level have drawn some selling interest. Local and HK equities are higher led by property and tech names. April trade figures showed a rebound in growth, particularly on the import side, which should allay fears of a sharp slowdown in domestic demand.
• 1 month USD/KRW has drifted higher, the pair last near 1366, which is close to its 20-day EMA. Onshore equities are lower, off by 1%. We had March current account data show a further rise in the surplus position, but sentiment in the FX space didn't change. President Yoon also gave his first press conference in 2yrs and set out an agenda for his remaining time in office. Addressing inflation and raising the domestic birth rate are key focus points.
• USD/PHP sits down a touch, last under 57.40. We had Q1 GDP print close to expectations earlier, although the detail showed softer domestic demand conditions. This should lead to a pause from the BSP next week.
• USD/THB is back under 36.90m around 0.20% stronger in baht terms. Moves towards or above the 37.00 region continue to draw selling interest.