Tech Related FX Outperforms, SEA Currencies Mostly Weaker

USD/Asia pairs are mixed in the first part of Thursday. We have seen some modest KRW and TWD outperformance, aided by tech equity gains. SEA FX is weaker albeit away from session lows. USD/CNH has been relatively steady around 7.2550, even as the USD/CNY fixing printed fresh highs back to January. We still wait for Thailand April customs trade figures, while Taiwan IP prints later. Coming up tomorrow we have Malaysian CPI.

• The USD/CNY fixing rose close to 7.1100, fresh highs going back to January. Spot CNY and CNH markets have been well behaved though. USD/CNH hasn't drifted too far away from the 7.2550 level. Local equities and Hong Kong bourses continue to retreat from recent highs.
• 1 month USD/KRW sits away from session highs, the pair last near 1360, up around 0.35% in won terms versus end NY levels from Wednesday. Earlier we got to 1365.30. The Kospi has ticked up from earlier weakness to be marginally higher for the session. This is outperformer weaker trends seen in HK/China markets so far today. A chip support package announced by the government worth $19bn (per BBG) has likely aided the local equity recovery and seen some modest positive spillover to the won. The BoK outcome lent hawkishly but is unlikely to surprised the market. BoK Governor Rhee stated it was unclear when the central bank would start discussing rate cuts.
• 1 month USD/TWD is back to the 32.20 region, aided by broader tech gains, with US futures up strongly post the Nvidia result. We are still comfortably above recent lows sub 32.00.
• USD/THB has continued to recover in the first part of Thursday trade. We were last around 36.50, just off session highs, but still 0.50% weaker in baht terms. We are around +2% higher from lows earlier in the week, with baht gains, aided by a stronger than expected Q1 GDP print, proving to be fleeting. A stronger USD backdrop, particularly in terms of USD/JPY levels, won't be helping, likewise gold prices moving off recent highs. Headlines have also cross this afternoon that a Thailand court has accepted a petition from a group senators seeking to dismiss Premier Srettha for an ethics breach. This follows Srettha appointing a cabinet minister last month. The PM has 15 days to respond and can continue duties until the court makes a ruling (see this BBG link).
• USD/PHP is around 58.15/20, just off session highs, and 0.20% weaker for the session. This is fresh highs back to 2022. The pair continues to consolidate post the recent break above the 58.00 figure level. Comments from BSP Governor Remolona crossed the wires late yesterday. He stated the central bank intervened modestly on Tuesday in FX markets. This followed the break above 58.00 in the pair during that session. The Governor stated they are looking to curb speculative activity on such moves. Still, it was reiterated that the authorities are not intervening every day and when they do, it is only in modest amounts. Such commentary doesn't suggest any great alarm around current FX trends, nor a firm line in the sand around a particular level.