Mixed Trends As Most Markets Return

USD/Asia pairs are mixed as many markets return from yesterday's holiday (although China still remains closed). Some pairs in SEA saw slightly firmer USD demand, but remain within recent ranges. Tomorrow, the focus will rest on the BNM decision, where no change is expected. Thailand CPI is also out, along with India and Singapore PMIs.

• China markets remain closed until Thursday. Still, Hong Kong equities rallied strongly at the open on optimism around the China May day holiday period, but this move ran into strong selling interest. The HSI is back to flat now. USD/CNH is back sub 6.9600, but remains close to its 200 day MA for now.
• USD/KRW 1 month is back below 1340 (last 1338/39). Apr CPI continued to cool across both headline and core measures. Otherwise, the focus was on geopolitics with Japan leader Kishida to visit South Korea this coming Sunday-Monday. Improving ties are evident between Japan-South Korea.
• The rupee is a touch firmer in early dealing, USD/INR is down ~0.1% last printing at 81.75/77. Broader based USD/Asia trends are dominating this morning as on shore markets re open after the observance of a national holiday. USD/INR printed a fresh year to date on the 27 April before paring losses into month end. Bears look to target 200-Day EMA (81.13), bulls look to break the 20-Day EMA at 82.01. April S&P Global Manufacturing PMI printed at 57.2 yesterday rising from 56.4, this was the highest print in the measure since December 2022.
• USD/MYR prints at 4.4590/4620, the pair is little changed in early dealing on Tuesday. Narrow ranges have persisted as USD/MYR consolidates above the 20-Day EMA. Rallies have been capped ahead of 4.47, with support seen at 4.45. On the wires today we had April S&P Global Manufacturing PMI which printed at 48.8 unchanged from the March read. The measure remains in contractionary territory since breaking below 50 in August 2022.
• The SGD NEER (per Goldman Sachs estimates) firmed to its highest level since the April MAS meeting yesterday before moderating gains. We currently sit ~0.9% below the top of the band. Broader USD trends dominated dealing yesterday, the pair was offered before paring losses as US data was firmer than expected. USD/SGD was supported at the 20-Day EMA ($1.3339), bears have been unable to break below the measure in recent dealing.
• USD/THB is back to 34.15/20, unable to gain much traction from a surging PMI print to the 60.0 handle. USD/IDR is also back above 14700, against recent lows under 14650. Apr CPI was close to expectations (4.33% y/y, 4.39% forecast and 4.97% prior for headline), while onshore equities are down 1.2%, which has likely weighed on FX at the margins.