Most USD/Asia Pairs Higher, THB Softness Continues

USD/Asia pairs are mostly higher in the first part of Wednesday trade. USD/CNH has firmed back above 7.1900, amid onshore equity jitters. Modest USD gains have also been evident elsewhere, amid a mixed equity backdrop, along with carry over from a firmer USD in Tuesday trade post the CPI print. In terms of tomorrow's data events the calendar is quite light. We are still waiting for China new loans, aggregate finance data for Feb, while India trade figures are also due Thur/Fri this week.

• USD/CNH has firmed back above 7.1900. The pair got to highs 7.1960, but we sit lower now. Onshore equities have struggled, although losses are modest at this stage. Reports of troubled property developer Country Garden missing a yuan bond payment has weighed in the space. A steady yen trend, along with a slightly less aggressive CNY fixing bias have also likely curbed CNH sentiment.
• 1 month USD/KRW has drifted higher, last near 1312. This is around 0.20% weaker in won terms. Local equities are higher but away from best levels. Earlier we had data on the unemployment rate, which fell to 2.6% (against a 3.0% forecast). This suggests the domestic labor market backdrop remains resilient. For the 1 month NDF, 1305,, which has marked recent lows remains intact.
• USD/THB gaped higher at the open, the pair got to highs of 35.76, but we sit slightly lower now, last near 35.68. This is still a baht loss of 0.30%. Some of this reflects catch up with USD strength post yesterday's onshore spot close, but still baht losses are larger than those seen elsewhere in the region. Local equities remain largely in a sideways range, while portfolio flows have been negative for both equities and bonds in terms of offshore investors in recent sessions. There are also reports that PM Srettha could vacate the finance ministers post due to his busy travel schedule (see this link for more details).
• Indonesian markets have returned but spot USD/IDR is holding close to recent lows, last near 15575. This is seeing some modest rupiah outperformance relative to the recent rebound in US yields. In February, Indonesia's consumer confidence index declined from the previous month's five-month high of 125.0 to 123.1 in Feb. The index for current economic conditions fell to 110.9, this decrease was driven by reduced confidence in current income, job availability, and durable goods purchases.