USD/Asia Pairs Higher, Singapore CPI Pressures Moderates, BoK Tomorrow

Most USD/Asia pairs have firmed, dragged up by higher USD/CNH levels. PHP has outperformed though. Tomorrow the focus will be on the BoK decision, where a 25bps hike is expected. Otherwise, the data calendar is fairly light. Thailand customs trade data may print. Singapore inflation figures undershot expectations.

• The early impetus in USD/CNH was to the downside, but this proved short lived, the pair troughed below 7.1300. The CNY fixing was neutral, while onshore equities have been softer, as a number of cities ramp up PCR testing to curb the severe current Covid outbreak. This afternoon the pair pushed above 7.1600 following headlines of protests at Foxconn's iphone factory.
• USD/KRW 1 month couldn't sustain early moves sub 1350, the pair last close to 1355. Business sentiment continues to soften, particularly in the manufacturing space, which suggests GDP growth will cool further. Short term external debt levels improved in Q3. The focus tomorrow is on the BoK outcome, +25bps is expected.
• USD/SGD has pushed back above 1.3820, around +0.30% firmer for the session. Q3 GDP revisions were nudged down to +1.1% q/q, and +4.1% y/y (from +1.5% and +4.3% respectively). October inflation figures have just crossed the wires, coming in weaker than expected. Core eased back to 5.1%, from 5.3% last month, while headline fell m/m by -0.4%.
• USD/PHP is back to the 57.30 level (-0.08 figs for the session), bucking the broader stronger USD trend. Philippine equities continue to outperform, last +1.07%.
• USD/IDR spot is holding above 15700, slightly above yesterday's closing level (last 15707). Better sentiment from lower US real yields overnight hasn't seen much follow through USD selling today.