USD/Asia Pairs Climb Further Amid Equity Headwinds

USD/Asia pairs are higher, albeit to varying degrees as the FOMC comes into view. KRW and a number of SEA currencies are the weakest performers, with losses around 0.40% at this stage. USD/CNH has crept higher but remains sub 7.2000, while like equities have been left disappointed by lack of fresh stimulus details post the recent central economic working group meeting. Tomorrow, we have the Philippines BSP decision, with no change expected, likewise for the CBC Taiwan decision.

• USD/CNH sits just off session highs, last near 7.1960. There appears to be some resistance to a move through 7.2000 in the near term. Local equities are down more than 1% at this stage, left disappointed by lack of new stimulus details. Headlines also crossed from the Vice Housing Minister stating that China will prevent builders debts from defaulting (CCTV/BBG), but this hasn't impacted sentiment.
• High beta USD/KRW sits sub session highs, last near 1316. Earlier highs were at 1317.50. Onshore equities have weakened despite a positive tech lead from US markets on Tuesday. The Kospi is down 0.80%. Earlier data showed bank lending to households continued to climb, while the unemployment rate ticked up.
• Dips in USD/THB have generally been supported. The pair is last at 35.77, which is at session highs. Thailand equities continue to falter, down a further 1%. The BoT mins saw the central bank reiterate the need to preserve policy space.
• USD/PHP has firmed, up nearly 0.40% to 55.80, to fresh multi week highs. There don't appear to be any fresh drivers of the move. Local equities are weaker, but weakness is line with moves seen elsewhere. We have the BSP decision tomorrow, no change is expected. Bank lending data for Oct will be out later today.
• MYR has lost nearly 0.50% for USD/MYR to sit above 4.7060. We continue to see a weaker terms of trade backdrop weighing. The Citi index is back to mid August levels, remaining comfortably in negative territory.