Post-FOMC Flows In Play, Yuan Defies Another Weaker PBOC Fix

USD/Asia crosses traded mixed, regional players digested FOMC MonPol decision. The yuan proved resilient, despite the PBOC's apparent discomfort with its current level.

• CNH: Offshore yuan traded on a marginally firmer footing, unfazed by another softer than expected PBOC fix. China's central USD/CNY mid-point was set 17 pips above sell-side estimate, bringing the sum of misses this week to 62 pips.
• KRW: Post-FOMC impetus allowed USD/KRW to nudge lower at the reopen, but the rate trimmed losses thereafter. Officials declared that they will continue to monitor market developments and may intervene to curb volatility in the bond market if needed. Vice FinMin Lee noted that South Korea will conduct an emergency bond buyback tomorrow, focusing on 5-10 year bonds.
• IDR: Spot USD/IDR extended its recent gains, approaching resistance from 100-DMA/Sep 30 high at IDR14,332/14,333.
• PHP: USD/PHP eased off despite an uptick in the Philippines' unemployment rate in Sep. Econ Planning Sec Chua sought to downplay the release, noting that the jobs market is expected to have improved in Oct. Elsewhere, the nation's daily Covid-19 case count fell to the lowest level since Feb on Weds.
• THB: USD/THB more than erased initial losses, despite upbeat consumer confidence data released out of Thailand. The University of the Thai Chamber of Commerce's gauge rose to a five-month high amid relaxation of Covid-19 restrictions.
• Markets in Singapore, Malaysia and India were closed in observance of local holidays, reducing liquidity in the region.