Mixed Trends, Spot USD/CNY To Fresh 2024 Highs

USD/Asia trends have been mixed in Tuesday trade to date. In North East Asia we are seeing some softness, while parts of South East Asia are stronger, although gains are quite limited at this stage. Tomorrow the main focus is likely to rest on China's CPI and PPI prints for May. We also have the BoT decision in Thailand, no change is expected.

• USD/CNH has once again found selling interest above 7.2700, although pullbacks have been limited. The pair last tracks near 7.2670 in recent dealings, little changed for the session. Onshore equities have returned from the long weekend, seeing further downside pressure. The CSI 300 is off around 1% at this stage, tourism and property headwinds weighing. Spot USD/CNY has pushed higher to +7.2530, which is fresh highs back to November last year.
• 1 month USD/KRW is firmer, last around 1375, up +0.20%, but we remain within recent ranges for the pair. Onshore equities are higher by +0.40%, while earlier data showed some slowing in early June export momentum, while the April current account slipped back into deficit due to strong equity related dividend outflows.
• Spot USD/TWD has risen 0.40% to 32.40, but the 1 month NDF is little changed. Onshore markets were closed yesterday, so this likely reflects some catch up to recent USD strength. Local equities are flat.
• Spot USD/PHP has edged down from recent highs, last just under 58.70. The pair has been unable to sustain levels beyond 58.80 so far in June. The 20-day EMA remains back near 58.33, while in 2022 upside gains were capped just ahead of 59.00 in spot terms. Earlier we had April trade figures, which showed a noticeably wider than forecast deficit (over -$4.7bn). This remains a headwind for PHP, particularly with a still elevated Fed rate backdrop. Elsewhere comments from BSP Governor Remolona, who was attending a Reuters forum, have crossed. The Governor reiterated that they don't intervene in PHP much, only when the market becomes disorderly and a specific level of PHP is not targeted. The greater concern is sharp moves in the FX rate can impact inflation.
• USD/IDR sits around recent highs, last at 16290/95, little changed for the session. Earlier highs were at 16298. The 1 month NDF is hovering just above 16300, sub earlier June highs of 16365. Comments from a BI official crossed the wires earlier. Edi Susianto, Executive Director for Monetary Management stated the central bank will continue its triple intervention in FX spot (DNDF) and the bond market. USD/IDR levels beyond 16300 are manageable it was added, and that the local currency will get support from exporters dollar supplies (BBG).