USD/Asia Pairs Lower, But CNH & KRW Can't Extend Wednesday Gains

Most USD/Asia pairs are down strongly, albeit away from earlier lows. CNH and the KRW 1 month NDF have struggled for further gains against the USD though. PHP has also lagged, while THB has been the strongest performer in spot terms. Regional equities are mostly higher, although China markets are lagging. Still to come today is the Philippines and Taiwan central bank decisions. Both are expected to remain on hold. Tomorrow, the main focus will be China's 1yr MLF decision and Nov activity prints.

• USD/CNH dipped below 7.1300 in early trade, as broader USD sentiment remained on the backfoot post FOMC. However, post the CNY fixing, which was within recent ranges, sentiment stabilized. The pair was last near 7.1440, so +0.10% above end Wednesday levels in NY. Local equities have struggled to post strong gains, which is also been a headwind for the local FX.
• 1 month USD/KRW wasn't able to break sub 1290 in earlier trade, and we now sit back near 1295, around 0.15% above NY closing levels. The authorities stated they will watch financial market volatility in the aftermath of the Fed. Local equities are higher, +1.2% for the Kospi.
• USD/SGD got back to late Nov lows, but couldn't get sub 1.3280. We last tracked near 1.3300. The pair is the only major SEA currency to be back close to late Nov lows. In the past week it is the third best performer in the Asia FX space behind KRW and THB.
• USD/THB threatened to break sub 35.00 in early trade, but found some support around 35.05/06, which also coincides with the simply 200-day MA. Onshore equities are +1.2% higher, but this follows a period of underperformance, where markets dropped more than 20% from recent highs.
• USD/PHP tracks at 55.76 in recent dealings, around 0.55% stronger for the session in PHP terms. This is lagging other SEA FX pairs, but the PHP NEER was at fresh highs recently, so this may reflect some pay back. The upcoming BSP meeting later should deliver no change.