USD/Asia Losses Trimmed As Session Progressed

USD/Asia pairs are once again mixed. Overall ranges have been modest, at least compared to earlier in the week. The early tone was for USD weakness, but this has given way to a more cautious tone this afternoon, with firmer US yields at the front end and waning equity gains, supporting the dollar. Still to come is India trade figures. Tomorrow, BI is expected to remain on hold, while China house prices are also due.

• USD/CNH got to a low near 6.8700 post the Jan-Feb activity data. The housing related measure for investment and sales were more encouraging but this was offset by as expected retail sales and slightly lower than forecast IP growth. Earlier the 1 yr MLF rate was held steady, but a larger injection in terms of MLF volumes was evident. The CNY fixing trend is near neutral. USD/CNH is back closer to 6.8850 this afternoon.
• 1 month USD/KRW got to recent lows around 1293/94 at the time of the China data outcomes, but has recovered back to +1300 now. Onshore equities are higher (+1%), but gains have been trimmed as the session progressed.
• USD/TWD spot is holding close to the 200-day MA, last around 30.58. The better equity tone helping, but higher yields are supporting the USD. Geopolitics is likely to be the other focus point. Headlines crossing that a US Congressional delegation will visit Taiwan today and tomorrow. Earlier Honduras stated it would look to establish ties with China, which would end its relations with Taiwan.
• The SGD NEER (per Goldman Sachs estimates) is marginally firmer today, recovering from recent lows post the fallout from the shift lower in global tightening expectations. The chart below shows the SGD NEER deviation from the top end of the band. We sit ~0.9% below the top end of the band currently. For USD/SGD, the pair is pressured today, down ~0.2%. The pair last prints at $1.3420/25 as the broad based USD/Asia moves spills over to SGD.
• USD/INR was offered earlier but hasn't seen much follow through. The pair is back to 82.45/50, little changed for the session. We remain within recent ranges, but be mindful of RBI intervention if we see a spike towards 83.00. The trade balance for February is on the wires today, the Bloomberg survey shows a deficit of $19.2bn is expected, slightly wider than the $17.75bn deficit seen in January.
• USD/IDR couldn't sustain the earlier dip sub 15350. The pair last tracking near 15370, around 0.10% sub yesterday's closing levels. On the downside, the 20-day EMA come in at 15304, while the simple 100-day MA is around 15420. Recall earlier in the month authorities intervened back on March 8th when we were above 15460.