Struggling, ADXY Back Sub 50 Day MA

USD/Asia pairs are higher across the board, albeit to varying degrees. The firmer USD tone post yesterday's US CPI print has persisted, while lower regional equities have also weighed today. The ADXY index is back sub its 50-day MA for the first time since Nov last year (see this link). KRW and THB are the weakest performers, while INR and CNH have outperformed modestly. Still to come is Indian trade data. Tomorrow is headlined by the BI and BSP decisions (BI likely to remain on hold, while BSP will hike, most likely by 50bps). China new home prices for Jan also print.

• USD/CNH is back above 6.8500, +0.20% firmer for the session. This is highs back to early Jan, but the CNH losses have been more modest compared to elsewhere today. Local equities are struggling, while the 1yr MLF rate was held at 2.75% as expected.
• 1 month USD/KRW is back to the 1282/83 region, levels last seen in late Dec last year. Tech related equity sentiment has been weaker today, while the won's high beta nature has again been on display. Offshore investors have sold -$335.6mn of local shares today.
• USD/INR is ~0.1% firmer, printing at 82.85/90. We are close to recent highs near 83.00, so be mindful of intervention risks. Indian Equities have seen foreign investors buy a net of $389mn on Friday and Monday, however the net for the month is an outflow of ~$217mn. On the wires today we have January Trade Balance. The Bloomberg survey median is for a deficit of $23.5bn.
• There have been a host of Thailand headlines, with the central bank stressing that the path to policy normalization will be gradual and there is no need to raise rates aggressively. The central bank also stated the degree of baht volatility and the currency's current levels are manageable for local businesses. This followed calls earlier in the year, from certain sectors of the economy, to curb baht strength. USD/THB is back above 34.10, around 0.95% higher for the session.
• USD/IDR is up modestly, +0.30% to 15200/05. This is slightly below recent highs and still wedged between key EMA levels. Jan trade figures were reasonably close to expectations, the surplus at $3.87bn ($3.25bn expected and $3.965bn prior). Export growth was firmer though at +16.37%, +12.50% forecast. BI is expected to remain on hold tomorrow.