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Most USD/Asia Crosses Soften, But USD/CNH Holds Firmer

ASIA FX

Most Asia EM FX traded with a modest bullish bias, albeit USD/CNH struggled for any topside impetus.

  • CNH: Spot USD/CNH operated above neutral levels, even as China posted a record monthly trade surplus over the weekend. The PBOC resumed weaker yuan fixings and set their central USD/CNY mid-point at CNY6.3959, 22 pips above sell-side estimate.
  • KRW: KRW gave away its opening gains. Latest polling pointed to mounting headwinds for South Korea's ruling Democratic Party ahead of the 2022 presidential election.
  • IDR: Spot USD/IDR tumbled after Bank Indonesia said last Friday that they expect a stronger rupiah and signalled readiness to enforce stability in FX markets.
  • MYR: Malaysia eased Covid-19 curbs across a number of states, while the federal gov't lifted a mandatory charge on inbound foreign travellers. The ringgit appreciated.
  • PHP: Spot USD/PHP went offered and printed its worst levels in more than six weeks. The City of Manila abandoned its face shield mandate.
  • THB: The baht was among the best performers in the Asia EM basket. Thailand reported the fewest Covid-19 deaths since Jun 29.

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