USD/Asia Pairs Mixed Despite Equity Falls

USD/Asia pairs have been mixed today, despite a risk off tone evident in both G10 FX and regional equities. USD/CNH has been relatively steady, close to 7.2600, while a firmer yen has likely helped KRW. In SEA USD/THB has rebounded, while USD/INR is creeping higher. Still to come is the BNM decision, with no change expected, along with Taiwan CPI. Tomorrow, China FX reserves are out along with South Korea's current account and goods balance data. Taiwan trade figures are also due.

• USD/CNH has tracked recent ranges in Thursday Asia Pac dealings. We currently sit slightly below NY closing levels from Thursday, last just under 7.2980, after a 7.2530-7.2681 range for the session. The CNY fixing was again much stronger than expected, which likely helped sentiment, although the initial impact was muted. Onshore and China equities are noticeably weaker though.
• 1 month USD/KRW found selling interest at 1305 on a number of occasions today. The pair last sat close to session lows just under 1300. Onshore equities are weaker, while offshore investors have sold local shares (-$230.3mn). A positive offset has come from the sharp slump in USD/JPY though (back to 143.80).
• The Rupee has weakened in early dealing, as higher US Tsy Yields weigh. USD/INR is up ~0.2%, and prints its highest level since 13 June. USD/INR has firmed above the 20-Day EMA (82.17) and last prints at 82.42/43. S&P Global Services PMI ticked lower in June to 58.5 from 61.2 in May, the measure remains comfortably in expansionary territory. Junes Composite PMI printed at 59.4, the prior read was 61.6. Looking ahead the data calendar is empty for the remainder of the week.
• The Ringgit has weakened in early dealing as today's BNM monetary policy decision comes into view. USD/MYR is up ~0.2% last printing at 4.6560/90, the pair does remain well within recent ranges. Yesterday the pair finished dealing little changed, support came in at the 20-Day EMA (4.6407) and early losses were pared. Palm Oil futures fell ~0.5% yesterday as inventories expanded to their largest level in 4 months as export demand stayed sluggish, more here. The contract is firmer in early trade today and sits a touch above the MYR 3900 handle. On the wires this afternoon the BNM's latest monetary policy decision will cross, no change to policy is expected.
• The SGD NEER (per Goldman Sachs estimates) is little changed in early dealing, the measure remains well within recent ranges. We now sit ~0.7% below the upper end of the band. USD/SGD ticked away from the 200-Day EMA ($1.3503) yesterday rising ~0.3% as broader greenback trends continued to dominate flows. The pair last prints at $1.3525/35. On the wires yesterday; May Retail Sales fell 0.2% M/M ticking lower from the 0.5% M/M rise in April. Looking ahead, June Foreign Reserves is due tomorrow to round off the week's data.
• USD/THB has rebounded today, back above 35.00, last around 35.15. These moves put spot USD/THB back above its simple 200-day MA (35.086), but we remain comfortably below end June highs just above 35.70. The BoT seems comfortable with the current baht backdrop, at least according to Assistant Governor Piti Disyatat. The central bank official stated that fluctuations have been in line with the baht's fundamentals and that an improved economic backdrop should aid the baht recovery in H2.