​Most USD/Asia Pairs Higher, But TWD & PHP Strong Outperformers For The Week

Asian FX is mostly lower for today's session, unwinding all post Fed gains for some pairs. USD/CNH is higher, last near 6.7500, as onshore equities weaken and foreign investors sell local stocks. This has weighed on other currencies within the region, although PHP and TWD have remained outperformers. On Monday next week Thailand CPI prints, along with Indonesian GDP.

• USD/CNH remains within recent ranges and has seen some selling interest above 6.7500 emerge. However, the air out of the re-opening trade has deflated somewhat. The market largely ignored the better Caixin services print, which like the official services PMI, printed better than expected (52.9, 51.0 forecast). Weaker equities and stock connect outflows (the first since the start of the year) have weighed.
• 1 month USD/KRW has tracked higher, in sympathy with USD/CNH. The pair last at 1227.50. Onshore equities are still higher, +0.50%, while offshore investors have added a further $274.1mn to local shares.
• TWD has fared better. Spot USD/TWD is only slightly higher at 29.70, while the 1 month NDF is near 29.50, down -0.20% for the session. Carry over from near $4bn in net equity flows this week has helped TWD play some catch up.
• For USD/INR, the pair dealt through 82 level yesterday, printing its highest level since early January (82.21) before marginally paring gains into the close. Bulls now target the January high of 82.94, bears look to break the 50-day EMA at 81.52 to turn the tide. We were last near 82.20, with services PMI data showing a resilient growth picture (57.2, 58.5 prior). Onshore equities are higher despite further Adani weakness.
• USD/THB is among the strongest performers within the USD/Asia space today. The pair reached a high of 33.095, but is now back around the 32.95 level. This is highs in the pair back to Jan 19. Through the middle part of Jan we saw offers emerge on moves close to 33.20. On the downside, support is evident between 32.60/32.80. This consolidation appears to represent some caution around the China re-opening theme, or at least a lot of good news was already in the price. Onshore concern around the pace of baht gains, particularly from a competitiveness standpoint, is the other headwind.
• USD/PHP is bucking the broader USD/Asia trend. The pair is down a further 0.40% to sub 53.65 so far today. This is fresh cycle lows, and brings PHP gains for the week to 1.50%. Beyond the 53.50 level, early June 2022 lows around 53.00 could be targeted by peso bulls. On the upside, the 54.25/30 region should draw some selling interest.