Rebounds From Early Losses As Greenback Offered

Asia-Pac markets managed to shrug off a risk off lead from the US, while the greenback also shed a handful more pips.

• CNH: Offshore yuan is stronger, retracing yesterday's move after the PBOC fixed USD/CNY lower than expected. A piece in China's Economic Information Daily will have also given yuan bulls some encouragement, the frontpage commentary predicted China's economy will grow 8% in 2021 after posting 2.3% growth in 2020.
• SGD: Singapore dollar stronger, breaking through key support at 1.3210, inflation data was inline with the Y/Y print at 0.2%, with NSA CPI was flat M/M against expectations of -0.2%.
• TWD: Taiwan dollar has strengthened in Asia on Tuesday and is one of the best performers among its peers, still buoyed by upgraded forecasts for growth, exports and inflation from DGAS.
• KRW: The won has oscillated around neutral, the BoK statement to parliament adopted a cautious tone saying there were still COVID-19 risks, as well as risks to the vaccination programme, while the bank pledged to retain its accommodative stance.
• INR: The rupee gained, the RBI minutes release yesterday shows the bank is concerned by inflation readings, the minutes showed that most members cautioned on upside risks.
• IDR: Rupiah made some small gains, USD/IDR was subdued ahead of the budget update later in the session.
• MYR: Ringgitt is higher but off best levels, oil palm growers expressed a sense of surprise with the gov't's decision to hike cess on crude palm oil and crude palm kernel oil.
• THB: Baht is higher but has retreated from highs of the day after trade data showed exports rose less than expected. PM Prayuth pushed back against press speculation surrounding potential for a cabinet reshuffle in the wake of the recent no-confidence vote against the premier and nine ministers. Prayuth insisted that no minister will lose his post owing to the results of the vote.
• PHP: The peso reversed early losses to head into the close with gains, Pres Duterte resisted mounting pressure from economic officials to relax Covid-19 curbs, with his spokesman noting that the president won't authorise such a move before the rollout of vaccines.