Spot FX Weaker, But NDF Levels Mostly Away From Wednesday Lows

USD/Asia pairs are mostly higher in spot terms, but trends in the NDF space have been more muted relative to Wednesday session trading session highs, as USD gains have been tempered somewhat. USD/CNH has been supported on dips, but is also not seeing headway through Wednesday highs. Tomorrow, we have Thailand and Philippines CPI prints. Taiwan inflation figures are also out. Singapore retails sales is also due.

• USD/CNH was supported sub the 7.1600 level, as the CNY fixing stabilized. We couldn't breach the 7.1700 on the topside though. Local equities are down sharply, the CSI 300 off nearly 1.40%. Fitch downgraded the outlook for some local asset managers. The Caixin services was stronger than expected, but didn't aid sentiment.
• 1 month USD/KRW has been relatively stable, the pair currently holding near the 1307/08 region. Onshore equities have continued to correct lower, off nearly a further 1%, but this hasn't impacted won sentiment negatively.
• Spot USD/IDR has continued to push higher, the pair last near 15530, off around 0.3% versus yesterday's closing levels. The 1 month NDF sits lower though relative to Wednesday highs, tracking at a similar level (15533). For spot we are through all key EMAs, with upside focus likely to rest on the 15600 level. A weaker global equity trend since the start of the year has weighed on the rupiah, with 5yr CDS ticking up to 76bps, against late 2023 lows sub 70bps.
• USD/THB has continued to climb today, back into the 34.55/60 region. This is 0.70% weaker in baht spot terms. A weaker baht tone is in line with the broader recovery in USD sentiment, along with softer gold prices. Local equities sit off recent highs, while offshore investors have had a mixed start in terms of flows since the start of the year. The Dec inflation print is due tomorrow. The market looks for similar trends to the Nov outcome. The next monetary policy meeting isn't until Feb 7.
• PHP has outperformed the firmer USD backdrop. Spot USD/PHP sits relatively steady in the 55.55/60 region. Onshore equities have outperformed, up 1.2%, with more IPOs this year and more retail products set to become available. BSP Governor Remolona has stated the central bank doesn't want to overtighten but knows what it has to do if inflation stays high (RTRS). The Governor also noted the country was moving towards a less managed FX rate (BBG).