Resilience Outside Of CNH

Outside of USD/CNH, most USD/Asia pairs are lower today, bucking the higher beta trend in G10 FX. Moves have been fairly modest though. Still to come is Taiwan export orders data for August. Tomorrow South Korea first 20-days trade data for September is due. Note Thursday delivers central bank meetings across Indonesia, the Philippines and Taiwan.

• USD/CNH dips have been supported. The pair is back above 7.01. As expected, the LPR rates were left unchanged. Onshore equities are higher, but underperforming the rest of the region. Hong Kong has fared better, aided by the authorities lowering covid restrictions related to hotel quarantine.
• USD/KRW has edged down slightly, but has tracked tight ranges overall, currently sitting at 1388 in the 1 month NDF. The Kospi is higher at +0.60%.
• USD/TWD is away from highs around 31.40. Onshore equities are up around 0.8%, but as we noted earlier tech headwinds persist.
• USD/INR is back to 79.60 (-0.20% for the session), well within recent ranges. Onshore equities are higher, with the NIFTY eyeing another test of the 18000 level (last 17855).
• USD/SGD is also within recent ranges. Moving away from a break above 1.4100 (last 1.4070/75). The MAS noted earlier there is a high degree of uncertainty surrounding the outlook. The SGD NEER is still generally trending higher though.
• Spot USD/IDR trades close to unchanged at 14977, as participants eye Bank Indonesia & Fed monetary policy reviews this week. Bank Indonesia is expected to raise the 7-Day Reverse Repo Rate by 25bp this Thursday, with some calling for a 50bp rate rise.
• USD/PHP is back under 57.40, with the peso slightly firmer on the day. 57.40 has been a resistance level this week. Bangko Sentral ng Pilipinas will announce its monetary policy review this Thursday, with most analysts expecting a 50bp hike to the key policy rate. Monthly budget balance will be published on the same day.