Sentiment Stabilizes, Helped By Higher Equities

It has been a better day for Asian FX, with most currencies up against the USD. Equities remain the focus point, with other cross-asset signals not significant for the session. Gains in HK/China equities have helped stabilize sentiment from a broader risk appetite standpoint. Tomorrow, China industrial profits are on tap for September, along with South Korean Q3 GDP.

• USD/CNH is back sub 7.3100, down from earlier highs above 7.3400. Reuters reported that state banks sold dollars in both the onshore and offshore market late yesterday. While this isn't a trend changer, it does signal increased resolve to slow the pace of depreciation. Onshore spot is back sub 7.2900.
• 1 month USD/KRW found selling interest above 1430 in early trade. Onshore equities are firmer (+0.80%) despite mixed earnings results. Offshore inflows have been nearly $190mn so far today. The pair couldn't sustain a move sub 1425 though, last back near 1427.
• Spot USD/IDR last seen -20 figs at 15,603, in line with regional trends, although familiar technical levels remain in play, as the pair holds yesterday's range. INDOGB 5-Year/10-Year yield spread keeps tightening to fresh cyclical narrows as the curve flattens. Indonesia's 10-Year yield premium over U.S. Tsys has rebounded from smallest levels this cycle over the course of this week.
• Spot USD/THB is lower, down nearly -0.80%, as a catch up play from overnight USD weakness. We last sat close to 38.00. Monthly customs-based trade data are expected to cross the wires this afternoon. The deficit may have shrunk to $3.050bn in September from $4.215bn prior.
• Spot USD/PHP operates -0.16 at 58.638, coming under pressure from lower U.S. Tsy yields/overnight greenback weakness. BSP Gov Medalla calibrated his recent messaging, noting that while he does see the case for steeper monetary tightening, the central bank will not raise interest rates excessively just for the sole purpose of preventing the peso from breaking a certain level.