USD/Asia Pairs Firm, MAS Unchanged As Expected

USD/Asia pairs are mostly higher in the first part of Monday, slightly underperforming the steadier tone the majors have seen against the USD (although EUR is down a touch). Given most in the region are net oil importers, the threat of higher energy oil prices will be weighing at the margin. PHP has fallen 0.35%, while USD/CNH is back to 7.1950, with weaker local equities not helping. The MAS was unchanged as expected. Tomorrow, the data calendar is light in the region.

• USD/CNH has been biased higher, but dollar gains have been modest, the pair last near 7.1950, around 0.1% weaker in CNH terms. China mainland stocks are underperforming today (the CSI 300 down around 0.4%). News around China Evergrande, seemed to weigh on sentiment, with creditors unable come to a restructuring agreement and courts ordering Evergrande to be liquidated. There has also been concerns around fresh US tech curbs. USD/CNH is close to the 7.2000 level, a move above may see greater push back from the China authorities.
• 1 month USD/KRW has stuck to recent ranges, the pair currently little change, last at 1335. Onshore equities are up comfortably over 1% to start the week, but some offset has come from higher USD/CNH levels, while a firmer oil price backdrop also hasn't helped.
• The Singapore MAS decision came and went without much market reaction The as expected outcome, left all policy parameters unchanged. The central bank looks to be gearing up for an eventual easing, but that may not happen at the next policy meeting in April. USD/SGD sits off session highs, last near 1.3415, little changed versus end Friday levels.
• USD/THB was biased lwoer in earlier trade, but found support close to 35.50. Baht sentiment was aided by headlines around the China/Thailand Visa waiver agreement. However, USD/THB now sits back above 35.60, erasing earlier gains. Further local calls for a BoT rate cut, coupled with weak domestic confidence is not helping, while broader USD gains have also weighed.
• Spot USD/PHP is 0.35% higher, putting the pair back close to earlier January highs. A clean break above this level is likely to see the market target a move back into the 56.75-57.00 region, highs from Aug-Oct last year. Outside of higher oil prices, local political is another potential headwind. A wedge is apparent between current President and former leader Duterte (see this BBG link).