Risk Off Boosts USD/Asia, CNH Outperforms

USD/Asia pairs are mostly higher, albeit with CNH outperforming. The risk off tone in the equity space, and yen gains against the majors, is boosting USD/Asia sentiment. Note tomorrow we get the RBI decision, no change is expected.

• USD/CNH sits relatively steady, last near 7.1700. It has outperformed the broader USD/Asia up move. Equities were weaker to the break, but have recovered sharply in afternoon trade. China trade figures showed a modest upside surprise for Nov exports, but there was little positive impetus for CNH.
• The Korean won has been an under performer so far today. Spot has weakened nearly 1%, last near 1325. The 1 month NDF is back in the 1323/24 range, fresh multi week highs. Local equities are actually flat, outperforming weakness elsewhere, but broader risk off tones are weighing for the won.
• The SGD NEER (per Goldman Sachs estimates) is little changed this morning, we remain well within recent ranges, and a touch off cycle highs. The measure sits ~0.3% below the top of the band. USD/SGD is holding above the $1.34 handle, albeit in a narrow range. There was no pressure from the lower US Tsy Yields yesterday, and we sit at $1.3410/15 this morning. On the wires this evening is November Foreign Reserves, there is no estimate and the prior read was $338.24bn. There is no market impact anticipated from the release.
• The Ringgit has opened dealing little changed from Wednesday's closing levels, USD/MYR remains well within recent ranges and moves have had little follow through. USD/MYR prints at 4.6715/45, the pair is ~0.1% firmer today. Due this afternoon Fortnightly Foreign Reserves crosses, there is no estimate and the prior read was $110.5bn.
• The Rupee has opened dealing little changed in a muted start to Thursday's dealing. Onshore participants are digesting a further fall in Oil prices and a further downtick in US Tsy Yields. USD/INR sits at 84.35/37. Inflows into local equities continued, foreign investors bought a net of $694.9mn of Indian equities marking the eighth consecutive day of buying. Looking ahead, due tomorrow is the latest monetary policy decision from the RBI, there is no change to policy expected. A reminder that the MNI preview, which crossed a short time ago, is here.
• USD/PHP sits higher, but at 55.33 remains very much within recent ranges. We closed yesterday at 55.31. Dec lows were at 55.24, while highs came in at 55.56, close to the start of the month. In the cross asset space, local equities sit lower (-0.80%) amid a more cautious risk backdrop more broadly. This is offsetting some positive, particularly around lower oil prices from a PHP standpoint.
• USD/THB has pushed higher, last near 35.36, 0.60% weaker in baht terms. This is fresh highs in Dec for the pair. Local equities are -0.80% weaker, while headline inflation printed weaker than expected (core was in line at 0.60% y/y).