USD/Asia Pairs Higher, KRW Underperforms, Indonesian Trade Surplus Narrows

USD/Asia pairs are higher in the first part of Monday trade, in line with broader USD gains against the majors, as Trump Presidency odds rise in the aftermath of the weekend's assassination attempt. US Tsy futures gapped lower at the open, but have since stabilized. Equity sentiment is mixed in the region, with less follow through from firm US/EU markets on Friday.

• USD/CNH got to earlier highs of 7.2862, but we sit back at 7.2740 in recent dealings, little changed for the session. USD/CNY spot is up, last around 7.2600. The CNY fixing was close to unchanged. Earlier data showed house prices continued to fall, albeit at a slightly reduced pace in June. Q2 GDP rose less than expected, while June activity data still pointed to a weak consumer backdrop. This will keep stimulus in focus as the Third Plenum unfolds in the first half of this week.
• On-going stimulus calls, coupled with US election risks, are likely to remain yuan headwinds.
• USD/KRW spot has rallied back above 1380, last near 1382, 0.50% weaker in won terms. This puts us back above both the 20 and 50-day EMA resistance points. Friday lows were at 1370.65. The won is displaying its usual sensitivity to broader USD shifts. Local equities are close to flat, but inflow momentum waned through the tail end of last week.
• USD/IDR is another seeing upward pressure, with the pair back to 16175/80, around 0.20% weaker in IDR terms. We are still sub the 20 and 50-day EMA resistance points, with the 50-day near 16200. We had the June trade figures earlier, which showed export growth at 1.17% y/y, versus 4.81% forecast. Imports rose 7.58%y/y, close to forecasts. The trade surplus printed just under $2.4bn, below consensus, but only modestly.
• USD/PHP is also up around 0.25%, last back above 58.50, while other pairs have seen more modest USD gains.
• USD/THB is tracking steadily, last near 36.20, leaving baht a modest outperformer.