Most USD/Asia Pairs Hold Above Post US CPI Lows

USD/Asia pairs are mixed, with a number of rates higher in terms of 1 month NDF levels relative to closing levels in NY. The USD has also stabilized against some of the majors, even with positive signals in the cross-asset space (higher equities/lower UST yields). Tomorrow, the focus will be the run of China monthly activity prints and the BSP decision (where +50bps is widely expected).

• USD/CNH has tracked familiar ranges. We currently sit slightly lower for the session, last around 6.9620. The authorities will no longer report asymptomatic covid case numbers, as that is too difficult in the current environment. The US will also reportedly blacklist more than 30 China companies related to tech export restrictions. This report hasn't impacted sentiment though.
• 1 month USD/KRW is up off overnight lows, last tracking around 1294, versus 1288 closing levels in NY. Onshore equities are higher, by close to 1%, while offshore investors have added to local equities.
• USD/THB is down a further 0.60% in spot terms today, to fresh lows of 34.60, reflecting some catch up to overnight USD weakness. The BoT minutes sounded confident in the growth outlook, which will be driven tourism and domestic consumption into 2023. Fiscal consolidation is likely next year, although LPG prices will be kept steady in January next year to ease cost of living pressures.
• USD/INR is off smalls from yesterday's highs, last around the 82.63 level. Overall, we remain comfortably within recent ranges. Coming up shortly is wholesale price data for November. The market expects a decent pullback in y/y momentum to 6.30%, from 8.39% prior.
• USD/PHP has retreated from yesterday's highs above 55.90. The pair was last around 55.72, there was support closer to 55.60 in the first part of the session. The BSP is widely expected to hike rates by 50bps tomorrow, see our full preview here.