Only Some USD/Asia Pairs Lower, Despite Broader Risk Appetite Recovery

USD/Asia pairs are trading in a mixed fashion, not enjoying the same degree of dollar weakness as observed against the majors, particularly seen in terms of NZD and AUD gains. Regional equity sentiment is positive for the most part, as sentiment recovers from Friday's Middle East escalation induced dip. China stocks are lagging though, along with Taiwan's index.

• USD/CNH sits just above 7.2500, having been range bound for the session. USD/CNY has edged above 7.2400, continuing to track close to the top end of the trading band (7.2464 today). As expected, the LPRs were left unchanged. Local equities may be weighed at the margin given US-China tensions were in focus late last week.
• 1 month USD/KRW sits around 0.50% firmer, last near 1380. The pair again found support in the low 1370 region, with highs near 1400 marking the topside. Onshore equities are higher to the tune of 0.80%, while earlier data showed continued export momentum in April, albeit with a potentially wider trade deficit for the month.
• Spot USD/TWD has hit fresh highs, above 32.60, around 0.20% weaker in TWD terms. This is fresh highs back to 2016. A weaker equity trend, as outperformance in the tech space has been unwound to some degree has weighed on TWD. Last week saw nearly -$5.9bn in weekly equity outflows from offshore investors. Later on today we get export orders for March.
• USD/THB continues to track higher, last near 36.95/37.00. This is fresh highs back to Oct last year. We have seen little signs of a pull back despite broader USD sentiment moving off its highs recently. Negative April seasonality could still be playing a role. Note Oct highs from last year came in at 37.24.
• USD/PHP sits slightly off recent highs (57.60), last just under 57.50. Some relief from lower oil prices is likely, although this doesn't appear to benefiting other parts of the region. US-Philippines military exercises will be a focus point given tensions with China.
• USD/IDR spot sits lower, last near 16210/15, against recent highs of 16288. We have March trade data coming in shortly, with some improvement in the trade surplus forecast given a higher terms of trade outlook in recent months. Still most focus is likely to rest on Wednesday's BI decision. The consensus looks for no change, but it could be a close call given recent rupiah weakness.