USD/Asia Pairs Lower, But Limited Moves Outside Of Baht Gains

USD/Asia pairs are mostly lower in line with USD weakness against the majors and a positive equity tone through most of the Asia Pac region. However, outside of strong spot THB gains and a move lower in the 1month USD/KRW NDF, other pairs have exhibited more modest trends. Tomorrow, we get the China trade figures for May, along with the RBI decision as the main focus points. No change is expected from the RBI. Thailand CPI and Taiwan trade figures are also out.

• USD/CNH has exhibited low volatility with respect to broader USD moves. The pair last around 7.2570, slightly lower for the session. the USD/CNY fix moved above 7.1100 but remains sub recent highs. Onshore equities are higher despite property market names struggling, as the May rally continues to be unwound.
• 1 month USD/KRW is back to 1363/64 region, around +0.30% stronger in won terms. Earlier lows were at 1361.4. The better equity mood, particularly in the tech space has aided sentiment, although onshore markets have been closed today (returning tomorrow).
• USD/TWD post is back under 32.30, a +0.15% TWD gain. Local equities are around +2% higher, following the surge in tech/chip stocks in Wednesday US trade (led by Nvidia).
• USD/THB has fallen a little over 0.60% in the first part of Thursday trade. We were last near 36.45, slightly up from session lows near 36.42. This puts us back sub the 50-day EMA (around 36.51). Yesterday's moves above the 20-day (36.64) couldn't be sustained. The 100-day EMA is back near 36.23. Concerns around BoT independence, amid reports the government will look to exert more influence over the central bank weighed on baht yesterday. Still, broader USD/US yield trends will also be a key near term driver for USD/THB. US-TH 2yr government bond yields sit back at +237bps, lows in the spread back to early March this year.
• USD/IDR holds a touch below recent highs, last around 16285. Headlines have crossed of BI being in the market to support the rupiah, but downside momentum in the pair has proven to be limtied at this stage.