Steady Trends, BI Still To Come, BoK Tomorrow

USD/Asia pairs have had a relatively quiet session. Mixed trends have been evident, but tight ranges have prevailed in the first part of Wednesday trade. The yuan is a little weaker, but USD/CNH has not breached 7.2500. KRW rallied with the NZD post the hawkish RBNZ hold, but we have since pared gains. Still to come today is the BI decision, with no changes expected. Tomorrow, the BoK meeting in South Korea is also expected to deliver an unchanged outcome.

• USD/CNH has drifted a little higher, but remains sub 7.2500 for now. USD/CNY onshore spot is close to 7.2400. Equity trends have been close to flat, leaving little in the way of spill over for FX markets.
• 1 month USD/KRW got to lows near 1358 amid positive spill over from the NZD bounce post the hawkish RBNZ hold. However, there was no follow through. We sit back near 13060, slightly off end NY closing levels from Tuesday. Earlier data showed a slight pick up in PPI momentum, while the BOK survey of business sentiment showed large manufacturers outperforming.
• USD/HKD has stabilized somewhat following the recent break below the mid-point of the peg band. The pair was last around 7.8050. We sit below all key EMAs on a spot basis. The 20-day is the nearest, which is trending lower and last around 7.8125. US-HK yield differentials are trending lower, last at +60.5bps, albeit still in the USD's favor. This has been more reflective of higher HK rates, with the 3 month Hibor back to +4.78%, fresh highs going back to Jan. US front end yields remains very steady near 5.58%. Near term trends in spreads will continue to be dictated by the HK leg, as there seems little prospect of a meaningful shift lower in US front end.
• Elsewhere, trends have been steady. USD/PHP sits off recent highs, last near 58.17, but still comfortably above the 58.00 figure level. USD/IDR is hovering close to 16000, also little changed for the session.