USD/Asia Pairs Lower Despite Mixed Equity Backdrop, USD/CNH Close To Weekly Lows

The bias for USD/Asia pairs has been to the downside, with losses across the board (except for PHP, although it is only down a touch for the session). Supports have come from weaker USD trends against the majors, however, it should be noted that yen has weakened modestly. In the equity space, sentiment is mixed, with tech pays down following Nvidia losses late in US trade from Wednesday. Still this hasn't impacted FX sentiment a great deal. The data calendar has been empty today.

• USD/CNH got to the low 7.1100 region this afternoon before some support emerged. This was around 0.30% up in CNY terms for the session. There didn't appear to be any fresh macro drivers for the move. Onshore equities are down a touch, while local bond yields are steady for most tenors. One possibility is exporters off loading FX deposits, which has been muted in recent weeks. Month end is approaching as well. USD/CNH was last near 7.1150, earlier weekly lows were 7.1070.
• Spot USD/KRW has stuck to recent ranges, the pair last near 1335, slightly down for the session. Onshore equities are weaker at this stage, off nearly 1%. South Korean President Yoon stated Thursday that the economy is ‘reviving’ and that boosting consumer demand is key to maintaining that momentum. Spot USD/TWD is holding just under 32.00, while the Taiex is weaker.
• USD/MYR is down sub 4.3300, fresh cycle lows for the pair. Downside targets are likely to rest at 4.3000. USD/MYR is breaking to fresh lows, positives are ongoing strength in the equity market and further evidence that inflows from offshore investors remains robust. The local equity index is tracking at fresh highs back to 2020. To add, news this morning of potential reforms around bringing back consumption tax may also be adding to the positive sentiment in markets. Headlines have crossed this afternoon from Reuters denying reports reintroduction of the GST is being considered.
• USD/IDR is relatively steady, last near 15410, so biased weaker but above recent lows near 15300. USD/THB is holding steady close to 34.00, little changed for the session. USD/PHP has ticked up to 56.30, but this is only a 0.1% gain.