Recent Outperformers Slip Amid Yen Losses, IDR Rallies On Equity Rebound

USD/Asia pairs have been mixed today. Recent outperformers have given back some recent gains. CNH, MYR and THB have all lost ground. Higher USD/JPY levels amid a dovish BoJ has caused some negative spill over. Working the other way has been stronger equity trends, as we continue to recover from the recent rout. KRW is marginally weaker, while TWD has been close to steady. IDR has been the strongest outperformer.

• USD/CNH got above 7.1900, but sits slightly lower now, a loss of 0.30% for the yuan. The highest USD/CNY fixing, coupled with a a resurgent USD/JPY weighed on China currency sentiment. Export growth was also weaker than forecast, while imports were higher than forecast, although trends for commodity import volumes are still softer.
• USD/KRW has drifted higher, last near 1378, with JPY and CNH losses hurting sentiment. Local equities continue to rebound, providing some offset. It has been a similar backdrop for USD/TWD, which was last 32.71, slightly higher for the day.
• USD/MYR has rallied, back above 4.50, around 0.60 weaker in MYR terms. USD/THB is up to 35.64. We had slightly stronger than forecast inflation data for July, but we remain sub the bottom end of the BoT's 1-3% inflation target band.
• USD/IDR is off 0.40%, but under 16100, as the better equity tone aids risk appetite for the rupiah, driving outperformance in Wednesday trade to date.