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Most Asia FX Rebounds


Broad risk on sentiment has seen Asia FX bid as the greenback recedes. Volumes remain fairly thin with US participants slow to return after the Martin Luther King Jr holiday on Monday, while key risk events will likely keep traders on the sidelines. Yellen will testify to congress at 1000ET/1500GMT, while China report prime rates tomorrow, Malaysia and Indonesia announce rates later this week.

  • The PBOC fixed USD/CNY at 6.4883, in line with sell side estimates and around 38 pips higher than yesterday. The bank also injected CNY 75bn, well above the CNY 5bn injections seen over the past week. However a weaker fixing for the yuan and a liquidity injection were not enough to dampen risk sentiment evident in the region, USD/CNH is last down 29 pips at 6.4940, but off worst levels of the day.
  • USD/IDR has traded sideways, holding near neutral levels thus far. The pair last trades little changed at IDR14,065 & participants remain on the lookout for fresh catalysts.
  • USD/THB has slipped and last deals down modestly at THB30.02, trading through yesterday's trough
  • USD/SGD managed to break yesterday's low, down around 22 pips at 1.3291 having taken out the 1.33 handle which was challenged but not broken yesterday.
  • USD/MYR has edged lower, but remains within yesterday's range amid lack of catalysts. Last 4.0490.
  • USD/TWD has bucked the trend and ticked higher through the session, though the rate is still down on the day due to wild swings into the close on rumoured CB intervention. Last 27.992.
  • USD/HKD last at 7.7525. HKD bid in Asia, hitting the highest levels in a week against the greenback as the Hang Seng soars and amid 19 consecutive sessions of inflows.
  • USD/KRW heads into the close near session lows, down 2.35 at 1101.65 as the won rebounds from the lowest levels in 4 weeks, but still has some way to go to close the gap from Friday's close (close at 1099.75)

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