North East Asia FX Firms, But PHP & MYR Underperform

A number of USD/Asia pairs are lower, although there hasn't been a great deal of follow through. There were also some exceptions, with USD/PHP and USD/MYR both pressing higher. USD/CNH sits close to 6.7920 currently, down slightly for the session. We are still waiting for China FX reserves data, along with Taiwan for Jan trade figures. Tomorrow is headlined by the RBI decision, +25bps expected.

• USD/CNH is has again found support around the 6.7800 level, with the pair last around 6.7915/20. The CNY fixing was actually weaker relative to expectations, reversing relative to yesterday's trend. Onshore equities are higher, but only modestly.
• 1 month USD/KRW got to the low 1250 region, but found support around this level and pushed back to 1255/56 currently. Onshore equities are higher 0.50%, with offshore investors adding +$134.1mn. Local officials will meet with FTSE/Russell officials tomorrow to push Korea's case for WGBI inclusion.
• The SGD NEER (per Goldman Sachs estimates) is moderately firmer this morning, the measure has eased recently as broad based USD strength has been present in the wake of a strong NFP print last week. NEER sits ~0.7% below the upper end of the band at present levels. USD/SGD is ~0.1% softer today, last dealing $1.3260/70, the pair is at its highest level since Jan 11. The pair has risen ~2% off lows seen last week. Whilst technicals remain bearish for USD/SGD, the tide may be turning. The pair has held above its 20-day EMA (1.3217) in recent trade. Bulls target the 50-day EMA at $1.3381. Bears first look to break 2023 lows at $1.3032.
• USD/PHP is tracking higher today. The pair last around 54.925, +0.950% above closing levels for yesterday. This coincides with earlier Jan highs, with the 55.00 level also approaching. The 20-day EMA, around 54.60 has been breached, which the 50-day EMA sitting higher at 55.33. This morning's Jan inflation surprise, +8.7% y/y, versus 7.6% expected, suggests the BSP clearly has more work to do. The forecast range was 5.4-8.0%, while core inflation rose to 7.4% y/y, from 6.9% in Jan. The next BSP meeting is Feb 16, with the central bank stating recently that it will take all necessary actions to bring down inflation.
• USD/MYR is back above 4.3000, +0.90% on last closing levels, although onshore markets were closed yesterday, so some of this reflects catch up. IP figures were weaker than expected at +3.0% y/y, versus 4.2% forecast. Mid Jan highs in USD/MYR come in around 4.3400.