USD/Asia Pairs Lower, CNH Again Steady, PBoC Vows TO Avoid FX Overshoot

USD/Asia pairs are lower across the board, although USD/CNH has proven to be sticky. We are away from best levels for most pairs. The PBoC vowed to avoid FX overshooting in the yuan. The won has been the standout performer, up 1% at one stage before paring gains. US Treasury Secretary Yellen shared concerns from both the South Korean and Japan FinMin's on recent FX weakness. This likely aided won sentiment. Tomorrow, we have Malaysia March trade figures and Q1 GDP out. The Philippines BoP position is also due.

• USD/CNH is range bound, continuing to exhibit a low beta to overall USD moves, the pair last near 7.2475. Spot USD/CNY is down slightly though. The USD/CNY fixing was steady, which may have the market a little disappointed, given recent USD weakness. The PBoC vowed to prevent the yuan from overshooting and managing broader expectations.
• Spot USD/KRW is back to 1375, as the won rebound continues. Long USD positions are potentially being trimmed post the recent step up in verbal FX rhetoric. Local equities are also up strongly, defying the negative lead from US markets. The 1 month NDF is back close to 1373. We are away from best levels, but the won remains an outperformer over recent sessions.
• PHP is around 0.20% firmer, with USD/PHP last near 57.05/10, close to the previous resistance point near 57.00, but we haven't been able to break through. The above factors are helping, while the sharp pull back in oil prices from Wednesday is another positive.
• USD/IDR is also down by around 0.20%, the pair last near 16185. China's foreign minister is in Indonesia today, with both sides talking up economic ties. Indonesia's foreign minister stating the country expects greater access to China markets. Barclays expects BI to hike next week in response to the recent round of FX weakness.
• THB is lagging somewhat, USD/THB close to unchanged so far in Thursday trade, the pair last near 36.75/80. MYR is around 0.30% stronger, the pair back under 4.7800 backing away from the 4.8000 level.