USD/Asia Pairs Away From Session Highs, CNH Outperforms

USD/Asia pairs are higher across the board, with the ADXY back sub 100 in index terms. Higher US yields and weakness in the equity space have been headwinds for regional FX today. We are away from dollar highs though, with a number of pairs close to YTD highs, which means intervention risks have arguably firmed. CNH has outperformed, as USD/CNH has backed away from a test of the 7.00 level. Tomorrow, we have China inflation data, the BNM decision (close call but no change expected), along with Thailand consumer confidence and Philippines jobs data.

• USD/CNH has been offered today, but we haven't drifted too far away from the 6.9800 level. The CNY fixing was noticeably stronger than expected, suggesting some reluctance to see a sharp break through 7.00 in the near term. Tomorrow's inflation prints are expected to be benign.
• 1 month USD/KRW found selling interest above 1320, with the pair last near 1319. Spot has weakened 1.6% so far today and is just above 1321. Onshore equities are down 1.3%, with offshore investors net sellers of -$224.2mn of local shares today. The authorities stated they will strengthen FX cooperation with the US authorities.
• USD/IDR continues to push higher, spot has gained a further +0.60% today for the pair, last near 15450. The pair is above all key EMAs, while we have broken above the simple 100-day MA as well (15429.50). Early Jan highs are in focus, just above the 15600 level. The currency is once again showing its sensitivity to core yield movements. IDR is the worst performer within the region month to date. Late headlines have hit of BI intervention.
• USD/INR is firmer today, +0.25% to 82.10/15, but still outperforming on a relative value basis. In the first 3 days of March Foreign Investors bought ~$1.67bn of Indian equities, this comes after reports last week of GQG Partners buying shares in four Adani groups. At the margins this will have helped INR outperformance against the rest of the USD/Asia bloc. INR has slipped to second best performer in the region, +0.66% month to date (THB is +0.83%), but March is traditionally a stronger seasonal month for the currency.
• The SGD NEER (per Goldman Sachs estimates) is marginally softer today, although the measure remains within recent ranges. We sit ~0.8% below the top end of the band. USD/SGD printed its highest level since late December. The broad based USD strength after Fed Chair Powells Senate testimony has weighed on the SGD. The pair is ~0.1% firmer today, last printing $1.3545/55.