USD/Asia Dips Supported, China Equities Struggle

USD/Asia pairs are mixed, with most up from earlier lows. USD/CNH has pushed towards 7.1700, while dips in USD/KRW have also been supported. The baht has recovered some ground after yesterday's sharp fall. Still to come today is Taiwan Dec trade data. Tomorrow, the South Korean unemployment rate is due, along with bank lending to households. Philippines trade figures are also out. Thailand PM Srettha will also meet with the BoT Governor tomorrow.

• USD/CNH has remained within recent ranges, albeit an upside bias for the Tuesday session so far. The pair last near 7.1700. The yuan enjoyed little positive spill over from stronger yen levels, although other G10 currencies have also lost ground against the USD. Local and HK equities are also struggling to maintain positive ground (the CSI 300 is back in the red after the lunch time break). Potential for further PBoC policy support may also be weighing on the FX at the margins.
• 1 month USD/KRW got to lows under 1307 but we have since rebounded back to 1312/13, to be weaker in won terms versus Monday closing levels. Onshore equities have struggled for positive ground, although offshore inflows have remained positive. A weaker CNH trend hasn't helped.
• USD/THB pulled back to lows of 34.82, but sits slightly higher now, last near 34.88. We closed yesterday above 35.00. Today's gain would be the first since the end of 2023. PM Srettha will meet with the BoT Governor tomorrow at 1pm local time to discuss the digital wallet plan and recent issues in the corporate bond market.
• USD/PHP has pushed higher this afternoon, the pair back above 55.90, a PHP loss of over 0.40%. There doesn't appear to be a clear catalyst for this round of USD strength. This puts the pair back near the 56.00 level, which generally drew selling interest in the latter stages of 2023.
• Trends elsewhere are mixed, with most pairs up from session lows this afternoon.