Risk-Sensitive Asia FX Struggle

Risk aversion dominated in Asia, sapping some strength from most Asia EM currencies, albeit this general risk-off impetus gradually moderated.

• CNH: USD/CNH rose to CNH6.4045 and trimmed gains thereafter. The PBOC set their central USD/CNY mid-point at CNY6.3957, 8 pips above sell-side estimate. It was the seventh weaker than expected fixing in a row, albeit some of the earlier misses were very marginal.
• KRW: The won faced headwinds from the broader risk-off feel, despite a beat in Samsung Q3 profits driven by the company's buoyant chip business. Meanwhile, South Korea's daily Covid-19 case count topped 2,000 for the first time in 20 days, with the country set to begin its "return to normalcy" from next week.
• IDR: The rupiah also lost ground on the back of wider defensive flows. There was little in the way of local headline flow to challenge fallout from the risk-off big-picture narrative. USD/IDR rose to its best levels in two weeks.
• MYR: USD/MYR lost shine in the Asia afternoon, after the release of upbeat local trade data. Malaysia's monthly trade surplus stood at MYR26.10bn in September, little changed from the month before, amid above-forecast growth in both imports and exports.
• THB: The baht firmed with participants awaiting updated forecasts from Thailand's Finance Ministry.
• PHP: The peso was slightly weaker. Econ Planning Chief Chua signalled that the current rate of inflation is disconcerting but saw a strong potential for GDP growth in Q3.
• SGD: USD/SGD reversed its initial gains. The MAS released their twice-yearly macroeconomic outlook, noting that global supply chain disruptions and upward pressure on wages can stay with us for longer than expected.