Most USD/Asia Pairs Supported On Dips, IDR Weighed By Local Protests

USD/Asia pairs have mostly tracked higher today, albeit to varying degrees. PHP spot gains have bucked this broader trend, while USD/CNH is close to unchanged. USD/IDR has risen around 0.80%, last tracking above 15600. Local protests has weighed on sentiment. The BoK left rates on hold but paved the wave for lower rates. USD/KRW is higher but only marginally.

• USD/CNH is tracking near 7.1300 in latest dealings, little changed for the session. The USD/CNY fixing was set at multi-month lows but also came in above market expectations, so a lean against appreciation pressures for the yuan. Local equities are mostly struggling for positive upside, with property indices marginally higher, but still close to recent lows.
• USD/KRW spot tested near Wednesday intra-session highs close to 1340, as the majority of the BoK board now sees rates potentially coming down in the next 3 months. Still, Governor Rhee stated the BoK easing cycle would not be as aggressive as the US's. A slightly softer tech equity tone in the region has been another won headwind. USD/KRW spot was last near 1336, around 0.15% weaker in won terms for the session. Recent dips sub 1330 have been supported.
• USD/IDR spot has gapped higher today, last in the 15610/15 region, around 0.80% higher. Local protests around proposed electoral rule changes has hurt sentiment. Local equities are off around 0.60% at the stage. Earlier data showed a slightly wider than forecast Q2 current account deficit. USD/IDR spot has been in oversold territory in recent sessions, which may be contributing to the extent of today's bounce.
• USD/MYR sunk at the open, but at 4.3500 found support. The pair was last back close to 4.3800, little changed for the session. Momentum remains skewed to the downside for this pair, a strong outperformer in SEA FX. The July CPI print was 2.0%y/y, slightly below forecasts (2.1%). BNM’s next meeting on September 5th is just prior to the Federal Reserve’s much anticipated September meeting
• USD/PHP sits near 56.35 in recent dealings, around 0.3% stronger in PHP terms. Outside of a modest CNH gain, PHP is the only Asian currency firmer today in spot terms. However, this largely looks to reflect catch up to NDF strength post yesterday's onshore close. Like elsewhere in South East Asia (SEA) FX, USD/PHP is oversold based off RSI (14) but continues to ride the weaker USD wave, as Fed easing expectations remain firm. There doesn't appear much on the charts to 56.00 round figure support. The local data calendar is reasonably quiet until next week when budget balance and bank lending figures are. August CPI prints on Sep 5.