TWD Outperforms, KRW Consolidates Following Recent Strong Gains

Most USD/Asia pairs have shown a positive bias for the session, but overall moves have been modest. Weaker regional equities have weighed, but the market is also likely taking stock ahead of tonight's US CPI print. Tomorrow the focus will be on Indian industrial production, while Malaysian Q3 GDP is also due.

• USD/CNH looked to re-test overnight highs near 7.2800, but found selling interest around this level. The pair was last around 7.2600. Onshore spot climbed above 7.2700 but also ran out of steam. Domestic covid news was generally negative with rising total case numbers and further restrictions. Onshore equities are mostly weaker.
• USD/KRW is consolidating somewhat. Spot is back near 1372, +0.50% for the session. This follows a 5% gain over the past month, the strongest since early 2017. Onshore equities are down by around 0.55%, while offshore investors have sold local shares today. The government is stepping up support of the housing sector.
• TWD is outperforming, the USD/TWD 1 month NDF down a further 0.5% today to 30.60. We are slightly away from lows, as onshore equities have fallen today. This comes after yesterday's +$800mn in net equity inflows, the strongest daily rise since early August.
• USD/INR is higher, back towards 81.60, with the pair bouncing off the simple 50-day MA (81.27). The rupee is still outperforming on a cross basis, with the NEER back to early October highs. IP figures print tomorrow.
• USD/THB is last around 36.81, back close to session lows. Bears take aim at the 100-DMA, which intersects at 36.641. Foreign investors were net buyers of $53.82mn in Thai stocks Wednesday, even as the SET index dropped. Consumer confidence improved to 46.1 in October, but only remains modestly above recent lows.
• USD/PHP is back to 58.12, +0.11 figs for the session, despite a decent Q3 GDP beat. he economy grew 7.6% Y/Y in the three months through end-September, printing above the consensus forecast of +6.2%. Economic Planning Sec Balisacan said GDP outturn was boosted by economic reopening, setting the nation on track to achieve its +6.5%-7.5% Y/Y growth target for the year. Still, the economy is facing risks from fast inflation and the authorities will monitor the situation to stabilise prices.
• Spot USD/IDR has added 42 figs to last trade at 15,703, with bullish focus falling on Nov 4 high of 15,750. INDOGB yield curve continues to flatten and 5-Year/10-Year spread has now tightened to less than 20bp for the first time since early 2019, as Bank Indonesia implements its "Operation Twist."