USD/Asia Pairs Lower, But USD/CNH Can't Sustain 6.7000 Break

Most USD/Asia pairs have continued to track lower in line with the trend in the majors, although we are away from lows for most pairs. USD/CNH dipped below 6.7000 but saw buying interest emerge. SEA currencies, particularly IDR, THB and PHP continue to see gains as well. Still to come today is Indian wholesale price data, along with trade figures. Tomorrow the focus will largely be on China Q4 GDP and Dec monthly activity figures. Singapore export data is also out.

• USD/CNH got to a low of 6.6975, but saw some USD demand emerge. The pair was last around 6.7120, in what looks like a modest consolidation following sharp falls in recent sessions. Onshore equities were very strong today, the CSI 300 up close to 2.0%, with continued strong northbound inflows. Onshore spot is still flirting with a concerted break sub 6.7000. The CNY fixing was very close to neutral.
• 1 month USD/KRW broke lower in line with the USD/CNH move and fresh weakness in USD/JPY. We got to 1230.60 but are slightly higher now, 1232.60 last. Onshore equities and net inflows continue in terms of recent positive trends in this space.
• Spot USD/IDR fell sub 15000 before some USD demand emerged. The pair last at 15038, still 0.75% firmer in IDR terms for the session. Note the 200-day MA comes in at 15057.47, so a close below this level today may support the rupiah rebound story. Outside of requiring exporters to keep more earnings onshore (as announced last week), the better global risk backdrop, which is encouraging fresh inflows into local bonds, is another support for the rupiah.
• USD/INR dipped in early trade, but is back to 81.37 now, unchanged for the session. The INR had its strongest week last week since early November rising ~1.7%, breaking through its 100-Day EMA on Friday for the first time since early 2022. INR bulls can now target the 200-day EMA at 80.0544, whilst bears first look to close above the 100-day EMA.
• USD/THB got to fresh lows of 32.705, but now sits slightly higher at 32.84, still the strongest levels since early March last year. USD/PHP is back to 54.55, fresh lows back to late June 2022, this is 0.65% firmer for the session. Overseas remittances were firmer, +5.7% y/y for Nov, versus +4.2% expected.