Regional FX Buoyed By Equity Rebound

USD/Asia pairs are lower across the board. The won has been the best performer, hitting fresh multi week lows near 1300. USD/CNH is also lower, back to the 7.0800/7.0900 region, amid surging HK and China related equities. Softer USD sentiment has helped amid expectations the Fed will hold steady in June. Next Mon the main focus is likely to rest on the Caixin services PMI print in China. Indonesian markets also return from a 2 day break (Thur/Fri of this week).

• USD/CNH sits slightly above session lows, last near 7.0900 (earlier lows were at 7.0825). Highs for the session sit at 7.1149. The equity market rebound has clearly aided sentiment, with strong moves across China related shares in HK and on the mainland. A clear catalyst wasn't evident for the shift in sentiment but we did see a 4% gain for China traded shares in US trade on Thurs.
• 1 month USD/KRW got to fresh lows near 1300, buoyed by the better equity tone. Won bulls could target the simple100-day MA, back close to 1298.50. We haven't been sub this resistance point since mid March this year. The 200-day MA sits at 1326.65 on the topside. Earlier, May inflation slowed further, while Q1 GDP y/y was revised a touch higher. The South Korean FinMin stated the export growth trend should improve. A BoK board member noted the structural headwinds for the won, but this hasn't impacted FX sentiment today.
• USD/TWD is also lower, but hasn't been able to test sub 30.60. The pair was last at 30.65. Onshore equities have resumed their uptrend, the Taiex gaining a further 1.1% so far today.
• Other markets have seen USD losses, to varying degrees, with broader macro trends driving sentiment rather that local drivers. USD/THB is back to 34.60, 0.60% strong for the session in baht terms. USD/PHP is back to 55.90/95, posting a similar gain.
• USD/INR is lower, but displaying a weaker beta to these moves, last at 82.30/35.