Several USD/Asia Pairs Break To Fresh Cycle Lows, INR Remains A Laggard

USD/Asia pairs are lower today, as fallout from the dovish Powell and firmer regional equities (for the most part), weighed on broader USD sentiment. Gains weren't uniform though, with KRW, TWD and PHP outperforming, while USD/CNH couldn't break to fresh lows. INR remains a laggard. Tomorrow, the China Caixin services PMI is due, along with Singapore's PMI and retail sales. India's services PMI also prints.

• USD/CNH got near 6.7050 in early trade, but has spent most the session between 6.71/6.72. Mid Jan lows came in just under 6.7000, so this remains the level to watch on the downside. Onshore equities have struggled for meaningful upside today, while the fixing bias didn't lean against recent yuan strength.
• 1 month USD/KRW got to fresh lows near 1215 in the first part of trade, amid on-going equity strength and broad USD weakness. The Jan CPI print came in a little stronger than expected, which may tilt the odds for further BoK action. We last sit around the 1218 level, in line with some consolidation in the broader USD/Asia space.
• USD/TWD spot has fallen another 0.90% so far today. This brings spot back to 29.65/70. Spot TWD gains since markets re-opened at the start of the week are now around 1.5%. This is comfortably the best performer in EM Asia FX for this period. Net equity flows are tracking for their best weekly inflow since 2005, while signs of improved economic relations with China are also helped at the margin.
• The SGD NEER (per Goldman Sachs estimates) has eased this morning after dealing higher in the aftermath of Fed Chair Powells press conference where he noted the disinflation process has begun. NEER sits ~0.5% below the upper end of the band at present levels. USD/SGD is ~0.2% softer today last dealing $1.3040/50, the pair printed a fresh cycle low of $1.3032 in early dealing. The pair fell ~0.7% in volatile trade late in the NY session yesterday as Fed Chair Powell spoke.
• USD/INR continues to consolidate, the pair is dealing a touch below its 20-day EMA today. Bulls look to break 82, whilst bears target 100-day EMA at 81.51. INR continues to lag the broader positive trend seen for the ADXY. Yesterday's budget appeared to be well received from the sell-side, with onshore bonds rallying on the reduced forecast borrowing amount for the upcoming fiscal year. Equities continue to struggle amidst on-going Adani saga.
• USD/PHP is off 1.1% so far today, with the pair back sub 54.00, fresh cyclical lows back to June last year. This breaks the pair out of recent ranges (54.30/54.80 roughly), with peso bulls potentially emboldened by the formation of a death cross, as the simple 50-day MA looks to break below the 200-day MA.