Positive Equity Tone Helps Limit USD Upside

USD/Asia pairs have traded in a mixed fashion, with a positive tone for the USD against most the majors spilling over into Asia FX to some extent. Most regional equities are higher, which has helped limit USD gains. The data calendar is very light tomorrow, with market focus also resting on events outside the region - US/EU banking issues and the upcoming Fed meeting.

• USD/CNH is back under 6.8800 this afternoon, aided by better online stock trends (following fresh gaming approvals), while the USD/CNY fix was also lower than expected. Still, we remain well within recent ranges for the pair.
• 1 month USD/KRW is slightly higher, despite a generally positive equity tone for the region. We are back to 1306 currently, around +0.25% above NY closing levels. Ranges for the session have been just under 1300 to 1307.50. First 20 days trade data for March continued to suggest headwinds in terms of external demand.
• USD/PHP sank to a low near 54.27 in the first part of trade, which is levels not seen since early Feb. We sit slightly higher now, last around 54.40/45. Still, this is +0.45% firmer in PHP terms versus closing levels from yesterday. The pair is sub all key EMAs, while the simple 50-day MA comes in at 54.80. The paring back of global rate hike expectations in recent weeks has boosted the carry appeal of the currency and probably helped offset some the negative impacts of global banking worries, particularly for a current account deficit economy like the Philippines.
• The SGD NEER (per Goldman Sachs estimates) is little changed today and has recovered a large portion of its SVB-inspired losses as it ticks away from recent lows, as shown in the chart below. We now sit ~0.8% below the top of the band. USD/SGD fell ~0.4% in yesterday's trade, the USD was pressured as risk sentiment grew after coordinated intervention by global central banks in funding markets. The pair now sits below its 20-Day EMA as it consolidates its recent losses as the broader USD trends dominate flows, last printing $1.3385/95.
• The rupiah couldn't hold earlier gains, with USD/IDR back to 15360 (we were closer to 15340 in earlier dealings). The 20-day EMA sits nearby, around the 15320/25 level, while the 50 and 100 sit in the 15290/95 range. We haven't been below these support points since late Feb/early Mar. We are well below recent highs around 15480. A more enduring rally is likely to require a more concerted pick up from offshore flows into local bonds. Foreign holdings trended down through Feb and the first half of Mar, before rebounding late last week, see the chart below (last Friday saw +$255.7mn in inflows).