Positive Spill Over From USD/CNH Break Lower
The rest of the region is seeing positive spill over from USD/CNH breaking lower. CNH has risen to fresh highs against the USD, last near 7.1900 (+0.40% firmer). This puts USD/CNH comfortably sub trendline support drawn from early Feb lows, which we highlighted earlier.
- The Hang Seng is up ~1%, headlines (BBG) crossed on late Friday that China's financial regulators vowed to meet all property developers financing needs. Onshore equities are still in red though.
- 1 month USD/KRW is sub 1290, last near 1287.75, not too far from last week's lows.
- USD/TWD spot is down the 31.70, +0.50% firmer in TWD terms.
- USD/IDR spot is back to 15400, fresh lows back to late September. This is +0.65% stronger in IDR terms, the strongest performer in the session to date.
- USD/PHP is back to 55.47, while USD/THB was last near 35.04, also fresh lows. Thailand GDP for Q3 just printed, a bit weaker than expected (THB is +0.15% firmer so far today, so somewhat lagging).
- MYR is +0.20% firmer, likewise for SGD FX.