USD/Asia Pairs Mixed, MYR Continues To Outperform

USD/Asia pairs are mixed, albeit mostly sticking to recent ranges. The exception remains continued gains for MYR. CNH and KRW are weaker, although more so the won, as USD/JPY climbs back towards highs from Friday last week. In South East Asia, THB is rallying along MYR, although IDR is softer. Tomorrow the focus will be on China's official PMI prints.

• USD/CNH has been biased higher today, although overall moves are muted. The pair last near 7.2730, little change from end Monday levels in NY. the USD/CNY fixing was set at a fresh high above 7.1300 (levels last seen in Nov 2023). Onshore equity sentiment remains on the backfoot, last down 1% for the CSI 300. Onshore yields are steadier though. Tomorrow's manufacturing is expected to show a contraction.
• Spot USD/KRW has drifted, but at 1384.5 remains comfortably within recent ranges. Onshore equities are off over 1.1%, reversing yesterday's gain. Local yields remain biased lower at the front end.
• USD/MYR continues to track lower, last near 4.6250, around +0.25% stronger in MYR terms and fresh lows in the pair back to the start of this year. USD/THB has also fallen sub 36.00, last 35.95, as onshore markets returned today.
• IDR isn't joining in on the rally though, with USD/IDR spot back to 16320, which is fresh highs back towards the start of July. Regional equity losses haven't helped today, while softer commodity prices may also be weighing on the terms of trade outlook, although arguably the same should be true for MYR.