USD/Asia Pairs Higher, CNH Outperforms, BSP Press Conference Coming Up

Outside of CNH, USD/Asia pairs have pushed higher across the board. Equity market weakness has been firm, particularly for tech sensitive countries. The won, the baht and IDR have been the weakest performers. Note BSP has a press conference scheduled for around 1.5 hours. This follows earlier reports in the week where Governor Remolona stated an off cycle rate hike may be considered today. Tomorrow, we have China industrial profits as the main focus.

• USD/CNH hold steady under 7.3300, showing no beta with respect to the higher USD trends elsewhere. Local equities are weaker, but the 0.65% dip in the CSI 300 is more modest compared to losses for other regional bourses.
• 1 month USD/KRW is not too far off YTD highs above 1360. The pair last near 1357.50. The sharply weaker onshore equity tone (Kospi -2.65%) has weighed and offset a modest Q3 GDP beat earlier. Tech equity winds are elevated from an earnings standpoint and high US yields.
• USD/THB sits near 36.34 in recent dealings, around 0.40% weaker in baht terms versus closing levels from yesterday. Earlier highs were at 36.385, which was just above the 20-day EMA, but we couldn't sustain this move. This keeps us well within recent ranges for the pair, with support evident ahead of 36.00, while recent highs at 36.55 remain intact. Baht weakness is line with broader regional trends, although the THB is outperforming a weaker equity backdrop.
• USD/INR is a touch above earlier lows, last near 83.25. The pair continues to see-saw in a narrow range around the 20-Day EMA (83.1880), there has been little follow through on moves. A 83.00/25 range has persisted for the most part since late September. Technically the pair remains in an uptrend, bulls target the high from 20 October 2022 (83.2975). Bears immediate focus is the 83 handle, a break of the handle opens low from 22 Sep (82.8325).
• USD/IDR is back above the 15900 level, and got close to Monday session highs, which prompted intervention from the BI. We last tracked near 15930.
• The Ringgit has pared early losses, USD/MYR again faced resistance ahead of the 4.80 handle.• USD/MYR prints at 4.7855/80, ~0.1% above opening levels. On the downside bears look to first break the 20-Day EMA (4.7454) which opens the low from 2 Oct (4.6900). The pair remains in an uptrend and bulls target a break of the 4.80 handle.
• The SGD NEER (per Goldman Sachs estimates) sits marginally firmer this morning and remains well within recent ranges. The measure is ~0.6% below the top of the band. USD/SGD has ticked higher this morning after breaching the $1.37 handle in yesterday's session as broader USD trends dominate flows. In early trade on Thursday we are ~0.2% above opening levels at $1.3725/30. IP data was stronger than expected for Sep 10.7% m/m, versus 8.1% forecast).
• USD/PHP holds steady near 56.94 in recent dealings. We haven't tested 57.00 resistance. Focus in the upcoming BSP press conference.