Supported By Lower US Yields, Firmer Equities, IDR Outperforms, CNH& PHP lag

USD/Asia pairs are mostly lower, albeit to varying degrees. Sentiment has been supported by positive regional equity sentiment, although China equities have been a noticeable laggard. IDR spot has rallied close to 1%, while those currencies exposed to tech related equities (KRW & TWD) have also risen. USD/PHP has seen support sub 57.00 ahead of tomorrow's BSP outcome.

• USD/CNH is sub 7.1500 but has seen limited ranges overall. The USD/CNY fixing was set lower than yesterday's outcome, although markets expected such an outcome. Onshore equities have struggled though, amid on-going growth concerns following yesterday's poor July credit data. Onshore bond yields have turned lower after sharp gains in recent sessions.
• Spot USD/KRW has tested sub 1360, but hasn't seen any follow through, the pair last near 1361, which is still 0.40% stronger in won terms for the session. The lower than expected unemployment rate data from earlier should see easing odds for next week trimmed. On the equity front, the Kospi sits 0.70% higher, off session best levels.
• Spot USD/TWD is down to sub 32.30, as local equities have gained more than 1% today. This is fresh lows for the pair back to early June, as the TWD rebound continues.
• IDR gains were in excess of 1% at one stage before we stabilized somewhat. USD/IDR was last near 15685. This is fresh lows in the pair back to March this level. This likely reflects both the lower US yield backdrop and better global equity tone. This month has seen better net bond inflow momentum from offshore investors. We have the budget outlook still to come this week.
• USD/PHP is back above 57.00, slightly weaker in PHP terms. Tomorrow's BSP meeting is seen as a close call around whether the central bank will commence its easing cycle.
• Both MYR and THB are up around 0.40/0.505 at this stage.