Mostly Strong Gains Against the USD, Except For THB & INR

Most USD/Asia pairs continue to trend lower, although THB and INR are notable exceptions. USD/CNH hit a fresh low sub 7.1300, while 1 month USD/KRW got back to lows last seen in mid-February. MYR rallied strongly, spot gaining over 1.3%, while Indonesian revamped its exporter conversion rules. On Monday next week the main focus will be on Q2 GDP from China, along with June monthly activity indicators. The 1yr MLF is also out, although no changes are expected.

• USD/CNH got to fresh lows sub 7.1300, before rebounding modestly, last back near 7.1340, which is very close to the 50-day EMA. The PBoC press briefing saw the central bank pledge more support to aid the economic recovery, and tailoring support for the property sector. The PBoC appeared relatively calm around the FX backdrop, reiterating previous guidance that FX based policy tools will be used as needed to prevent sharp swings in the yuan.
• 1 month USD/KRW got to fresh lows just under 1258, but we track slightly higher in recent dealings (near 1262). This was fresh lows in the pair back to mid-February. Equity sentiment remains positive amid on-going tech gains (as US real yields pull back). The Kospi has gained over 1% today, while offshore investors have added a further $161mn to local equities.
• USD/THB sits near 34.60 in latest dealings, which is slightly above Thursday closing levels. Support for the pair appears evident ahead of the 34.50 level. Recent highs came in in the 35.05/10 region, while a break of 34.50 would pave the way for a move towards May 22 lows at 34.25. The baht continues to underperform softer USD trends elsewhere. The Thai Chamber of Commerce has warned that a delay in forming the new government can hurt economic confidence. This comes after PM candidate Pita failed to secure enough parliament votes late yesterday.
• The Rupee has pared early gains and USD/INR now sits little changed from yesterdays closing levels. On the wires today we have June Wholesale Prices, a fall of 3.30% is expected. Wholesale Prices fell 3.48% in May. Also due to cross is June Trade Balance, a deficit of $20.22bn is forecast.
• USD/MYR is down ~1.14%, extending recent losses with the pair down over 3% in July to date as broad based greenback weakness weighs. The pair sits at its lowest level since 17 May and last prints at 4.5150/4.5250. Looking ahead the data local calendar is empty until June Trade Balance which crosses next Thursday.
• The SGD NEER (per Goldman Sachs estimates) printed a fresh cycle high in early dealing before paring gains to sit little changed. We sit ~0.3% below the top of the band. The Advance read of Q2 GDP, which crossed this morning, was firmer than expected printing at 0.3% Q/Q rising from -0.4% prior. A fall of 0.2% Q/Q had been expected. USD/SGD is ~0.2% softer, printing at $1.3185/95. The pair has breached Thursday's low and sits at its lowest level since mid-April as broader greenback trends weigh.
• USD/IDR sits slightly lower, the pair last at 14935, +0.22% firmer in IDR terms for the session. We are back to late June lows in the pair. The main macro news today has been the Indonesian authorities announcing revisions to exporter conversion rule. The country now requires a minimum of 30% of export earnings to be kept onshore for 3 months and the government may require conversion during periods of macroeconomic or financial market instability.