USD/Asia Pairs Down, Amidst Broader USD Pull Back

Most USD/Asia pairs are lower in line with a softer USD against the majors and US yields, which couldn't sustain an earlier bounce. THB and KRW have outperformed. CNH has lagged though. Tomorrow on the data front we just have South Korean consumer confidence early. Note Hong Kong Chief Executive John Lee will also give his annual policy address.

• USD/CNH sits slightly lower in recent dealings, last near 7.3080. Earlier dips to 7.3015/20 found support, while moves above 7.3100 have seen selling interest emerge. Local equities are trying to push higher, amid various supports from SOEs and the country's sovereign wealth fund. However, gains are still modest for the CSI 300. The US-China Economic Working Group held discussions, which comes ahead of the foreign minister's trip to the US later this week.
• Spot USD/HKD has drifted lower through the first part of Tuesday trade. Hong Kong markets have returned, but spot USD/HKD remains well within recent ranges. We last tracked near 7.8215, with the pair sub all key EMAs, with the 200-day back near 7.8300. Still, dips sub 7.8200 haven't proven sustainable in recent weeks. US-HK short term rate differentials have drifted lower, but the 3 mth spread at +18bps is still above late September lows. Note tomorrow Hong Kong Chief Executive John Lee delivers his annual policy address.
• USD/IDR sits comfortably off Monday session highs, but has crept higher as the session has progressed today. The pair was last near 15885/90. Session lows today came in at 15855. Highs in the pair yesterday were at 15962, before BI intervention curbed USD gains. Earlier President Jokowi stated that the impact of the weaker IDR trend is manageable from an inflation standpoint. He added higher US rates and capital outflows are additional risks (per BBG).
• USD/PHP sits slightly lower for the session, last near 56.75, around 0.15% stronger in PHP terms. This is underperforming higher beta plays in the region amid fresh USD softness, but we continue to track recent ranges. Earlier comments from Deputy BSP Governor Dakila struck a familiar tone. The central bank is watching CPI trends, it remains hawkish and won't cut rates until it is confident inflation is back in target (per BBG).
• The baht is sharply stronger in the first part of trade today. The currency is up over 1% against the USD. This puts us back near 36.15, slightly up from session lows for the pair. Whilst part of this reflects catch up to USD weakness (as onshore markets were shut yesterday), trade data has given the currency another lift, via a stronger than expected surplus due to higher export growth. Current USD/THB levels put us back close to October lows in the pair. We are back sub the 20-day EMA (near 36.39), while the 50-day is just under 36.00.
• Markets in India are closed today for the observance of a national holiday. On Monday USD/INR firmed ~0.1% to finish a touch above the 20-Day EMA (83.1871) as higher US Tsy Yields weighed on the Rupee. The data calendar in India is empty this week.
• USD/MYR is pressured today as the greenback is broadly weaker in Asia. The pair has ticked away from yesterday's cycle high of 4.7958 through this morning's session. We sit down ~0.4% at 4.7755/95. Bank Negara Malaysia Governor Ghaffour noted yesterday that the bank intends to ensure that Ringgit moves stay orderly and recent weakening of the currency do not reflect economic fundamentals.
• The SGD NEER (per Goldman Sachs estimates) has ticked higher in early dealing on Tuesday after firming yesterday to its highest level since 12 Oct. The measure sits ~0.5% below the top of the band. USD/SGD has fallen below the 20-Day EMA (1.3678) today as broad based greenback weakness weighs. The pair is ~1% below last weeks highs and last prints at $1.3650/55. Yesterday's September CPI report was mixed, headline CPI was a touch firmer than estimated at 4.1% Y/Y ticking higher from the prior 4.0%. Core CPI nudged lower to 3.0% Y/Y from 3.4%.