Most USD/Asia Pairs Higher, CNH Steady - Aided By Better Activity Data

USD/Asia pairs are mostly higher, in line with upbeat dollar index levels. CNH is steady though, aided at the margin by better than expected Feb activity figures. Equity sentiment is mostly positive around the region, likely helping cap upside dollar gains. The data calendar tomorrow is very light tomorrow, with just Philippines BoP data on tap. The BI decision follows on Wednesday.

• USD/CNH has had a low beta with respect to USD moves so far today. The pair was last near 7.2050, little changed for the session, while onshore spot remains under 7.2000. Onshore equities are higher by around 0.50% at this stage. Aiding sentiment, albeit at the margins, was better IP and FAI prints, with higher infrastructure spending a support point. Still, property indicators remain downbeat.
• 1 month USD/KRW has probed higher, getting close to 1332, but hasn't seen any follow through the pair last near 1331. Onshore equities are higher, while alter this week we get first 20-days trade data for March. Earlier headlines crossed around fresh North Korean missile launches, which appeared to coincide with US Secretary of State Blinken's visit to Seoul. There wasn't an impact on market sentiment though.
• USD/THB is just off earlier highs (35.965), sitting near 35.95 in latest dealings. We are still down nearly 0.50% for the session in spot terms. We sit comfortably above all the key EMAs (with the 20-day near 35.74), the closest on the downside. Topside focus will be on test above 36.00, note Feb highs in the pair came in around 36.20. Sell-side analysts are also highlighting negative seasonality for THB. Dividend outflows are expected to be 81bn baht this year, up from 72bn baht last per onshore analysis, per BBG. The majority of outflows are expected to hit in mind to late April.
• USD/IDR spot has pushed back to earlier March levels, back at 15665. The 1 month NDF is also higher, back to 15685. Dips in the pair sub 15600 remain supported, particularly with US yields firming through the second half of last week. Portfolio flows remain negative in the debt space, although are more positive in equities (at least for last week). Looking ahead, the BI decision on Wednesday is expected to see rates held steady.
• USD/MYR sentiment continues to grind higher, the pair last above 4.7200. Recent sessions have seen reduced USD weakness at the opens, which may suggest repatriation inflows to boost the ringgit have eased. On the data front, Feb trade figures saw expect growth slip back into negative territory (-0.8% y/y, versus +8.7% prior). The trade surplus was also slightly weaker than forecast.