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USD/Asia Pairs Higher, Won Drops, PHP Weighed By BSP

ASIA FX
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USD/Asia pairs are mostly higher, which is in line with the USD index gaining ground against the majors, particularly the yen. USD/CNH is off highs from above 7.2300, as headlines around further housing market support filter out, removed mortgage rates floors and reduced downpayments for homebuyers have been the highlights so far. The won has seen a large drop, while in SEA, THB and IDR are both off around 0.30%, PHP is slightly underperforming, down 0.45%, with dovish BSP rhetoric a likely factor.

  • We had mixed China data earlier, with retail sales and fixed asset investment weaker than forecast. Property sales/investment trends remained quite weak, while house prices falls accelerated compared to March. USD/CNH pushed to 7.2330, but we sit back lower now, as headlines filter out from China's housing market meeting. Eased mortgage rules and reduced downpayments, highlighted by the PBoC, is aiding property related equity sentiment in afternoon trade.
  • 1 month USD/KRW was up strongly in the first part of Friday dealings. We 1356.5, +0.60% from NY closing levels on Thursday, but we sit slightly lower now, last near 1353/54.. We were around 15 won weaker versus intra-session lows from Thursday (near 1340). Weakness in the yen is not helping sentiment today BBG also notes some onshore demand for USDs from local firms. Local equities are off by 0.90%, but the Kospi remains above 2700. More broadly, the 1 month NDF couldn't sustain the break of the 100-day EMA (around 1345).
  • USD/PHP is back close to 57.70/75, around 0.45% weaker in PHP terms for the session so far. This is in line with other SEA FX. The pair remains sub recent highs of 57.89 from earlier in the week. Focus is likely to remain on whether we can test 58.00 on the upside. Note the 20-day EMA sits back near 57.42, while the 50-day is around 56.96.PHP weakness today is in line with regional trends, but it has underperformed over the past week, off nearly 0.50%, despite a softer USD backdrop elsewhere. Earlier comments from BSP Governor Remolona are likely to reinforce risks around easier policy setting as we move into H2 of this year, a likely PHP headwind.
  • USD/THB is back to 36.25/30, around 0.30% weaker, while USD/IDR is back towards 15975, also off around 0.30% in rupiah terms.
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USD/Asia pairs are mostly higher, which is in line with the USD index gaining ground against the majors, particularly the yen. USD/CNH is off highs from above 7.2300, as headlines around further housing market support filter out, removed mortgage rates floors and reduced downpayments for homebuyers have been the highlights so far. The won has seen a large drop, while in SEA, THB and IDR are both off around 0.30%, PHP is slightly underperforming, down 0.45%, with dovish BSP rhetoric a likely factor.

  • We had mixed China data earlier, with retail sales and fixed asset investment weaker than forecast. Property sales/investment trends remained quite weak, while house prices falls accelerated compared to March. USD/CNH pushed to 7.2330, but we sit back lower now, as headlines filter out from China's housing market meeting. Eased mortgage rules and reduced downpayments, highlighted by the PBoC, is aiding property related equity sentiment in afternoon trade.
  • 1 month USD/KRW was up strongly in the first part of Friday dealings. We 1356.5, +0.60% from NY closing levels on Thursday, but we sit slightly lower now, last near 1353/54.. We were around 15 won weaker versus intra-session lows from Thursday (near 1340). Weakness in the yen is not helping sentiment today BBG also notes some onshore demand for USDs from local firms. Local equities are off by 0.90%, but the Kospi remains above 2700. More broadly, the 1 month NDF couldn't sustain the break of the 100-day EMA (around 1345).
  • USD/PHP is back close to 57.70/75, around 0.45% weaker in PHP terms for the session so far. This is in line with other SEA FX. The pair remains sub recent highs of 57.89 from earlier in the week. Focus is likely to remain on whether we can test 58.00 on the upside. Note the 20-day EMA sits back near 57.42, while the 50-day is around 56.96.PHP weakness today is in line with regional trends, but it has underperformed over the past week, off nearly 0.50%, despite a softer USD backdrop elsewhere. Earlier comments from BSP Governor Remolona are likely to reinforce risks around easier policy setting as we move into H2 of this year, a likely PHP headwind.
  • USD/THB is back to 36.25/30, around 0.30% weaker, while USD/IDR is back towards 15975, also off around 0.30% in rupiah terms.