Strong Gains (ex CNH)
USD/Asia pairs (ex USD/CNH) are seeing decent downside momentum, albeit to varying degrees. USD/KRW and USD/THB are the standouts. 1 month USD/KRW is now down to the low 1360 region, after breaking sub 1370. This is a 1% dip for the session, while USD/THB is just off session lows (last at 36.82, -1.30% on yesterday's closing levels). USD/TWD is back through 32.00, last 31.90, -0.50% for the session so far. Gains are evident elsewhere but generally more muted.
- The firmer equity tone in the region continues to give a risk on feel to markets. Asian FX is outperforming the majors though, with the BBDXY index only down by -0.15% at this stage.
- USD/CNH remains elevated as well, last close to 7.2500. The equity picture is more mixed and a fresh lock down in a major city, amid rising Covid cases, is likely weighing at the margin as well.