USD/Asia Pairs Gravitating Higher

USD/Asia pairs are drifting higher in the first part of Wednesday Asia Pac trade, albeit to varying degrees. A softer regional equity tone isn't helping, while USD sentiment has stabilized against the majors. US yields are lower, as the FOMC comes into view.

• USD/CNH has firmed a touch, last around 7.1950, while onshore spot is above 7.1800. Onshore and HK equities are weaker, with some disappointment around the lack of fresh stimulus details from the economic working group.
• 1 month USD/KRW is in the 1315/16, so slightly above NY closing levels. Local equities are lower, the Kospi down 0.40%.
• In SEA we are seeing slightly firmer USD levels. USD/MYR has pushed above 4.7000, fresh highs back to mid Nov. Weaker commodity prices in the energy space aren't helping, although such moves aren't benefiting energy importers elsewhere. For more details on yesterday's cabinet reshuffle see this link.
• USD/THB is off highs above 35.75, last under 35.69. PM Srettha stated late yesterday he won't resign if the digital wallet plan fails. Thailand equities remain underperforming, now close to YTD lows. 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.