USD/Asia Pairs Drift Higher, MYR Outperforms

USD/Asia pairs are either modestly higher, or flat for Tuesday trade. MYR is the exception, with higher energy prices potentially helping at the margins. A weaker yen, post the dovish BOJ hold, has also been a headwind at the margins. Overall losses against the USD have been fairly modest though. Tomorrow the main focus will be on the 1yr and 5yr LPR outcomes in China, no change is expected. Also due is Taiwan export orders.

• USD/CNH has mostly been supported on dips today, albeit within confined ranges. The pair was last near 7.1450. Spot USD/CNY has also recovered, back to 7.1430. Weaker equity sentiment in HK, amid further property related headwinds has not aided yuan sentiment. The USD/CNY fixing was set higher, albeit with the error term widening.
• 1 month USD/KRW sits around 0.20% above Monday NY closing levels in recent dealings. The pair at 1304.6 is back above its 20-day EMA, but firmer resistance is likely towards the 1315/20 region which has marked recent highs and were more EMA resistance points are evident. Higher USD/JPY levels post the on hold BOJ outcome have likely weighed on the won at the margins. Still to come is the BOK minutes from the most recent policy meeting.
• The Rupee has ticked lower in early dealing this morning as post-FOMC gains are trimmed. An uptick in US Tsy Yields is weighing as FOMC officials pushed back on 2024 rate cut expectations. USD/INR sits at 83.19/20, ~0.2% above yesterday's closing levels. A reminder that the local docket is empty this week.
• USD/IDR has been supported on dips during today's session, the pair last near 15510, little changed for the session, but up from earlier lows (15488). We remain within recent ranges for the pair, with Thursday's BI meeting the next major local focus point. A firmer core yield backdrop has likely weighed in recent dealings.
• The Ringgit was pressured on Monday as higher US Tsy Yields weighed, losses have been trimmed in early trading this morning. USD/MYR has broken the 20-Day EMA (4.6820) and is consolidating above the measure this morning. Novembers Trade Surplus was narrower than forecast, printing at MYR 12.41bn, a surplus of MYR 16.54bn was forecast.
• The SGD NEER (per Goldman Sachs estimates) is steady this morning, we remain well within recent ranges. The measure sits ~0.4% below the top of the band. USD/SGD is consolidating yesterday's gains above the $1.33 handle however ranges are narrow thus far today. Firmer US Tsy Yields added a level of support to the pair yesterday, several FOMC officials pushed back against the markets rate cut expectations for 2024. A reminder that the data docket is empty for the remainder of the week.