USD/Asia Pairs Mixed, Spot USD/CNY Firms Above 7.2400

USD/Asia pairs are mixed, despite a general risk on tone, particularly in terms of the major currencies. Oil prices are lower, as Middle East tensions recede, but offsets have come from firmer US yields, while spot CNY and JPY have weakened a touch. Regional equity sentiment is mostly stronger, albeit with some pockets of weakness, most notably in China and Taiwan (amid tech headwinds). Spot PHP and IDR have risen, while THB and TWD have been laggards. Still to come today is Taiwan export orders, while tomorrow we have South Korea PPI, Singapore CPI, India PMIs and Taiwan IP.

• USD/CNH sits just above 7.2500, having been range bound for the session. USD/CNY has edged above 7.2400, continuing to track close to the top end of the trading band (7.2464 today). As expected, the LPRs were left unchanged. Local equities may be weighed at the margin given US-China tensions were in focus late last week.
• 1 month USD/KRW sits around 0.40% firmer, last near 1378, slightly under session highs. The pair again found support in the low 1370 region, with highs near 1400 marking the topside. Onshore equities are higher to the tune of 0.80%, while earlier data showed continued export momentum in April, albeit with a potentially wider trade deficit for the month.
• Spot USD/TWD has hit fresh highs, above 32.60, around 0.20% weaker in TWD terms. This is fresh highs back to 2016. A weaker equity trend, as outperformance in the tech space has been unwound to some degree has weighed on TWD. Last week saw nearly -$5.9bn in weekly equity outflows from offshore investors. Later on today we get export orders for March.
• USD/THB continues to track higher, last near 36.94, slightly off session highs but still close to the 37.00 level. This is fresh highs back to Oct last year. We have seen little signs of a pull back despite broader USD sentiment moving off its highs recently. Negative April seasonality could still be playing a role. Note Oct highs from last year came in at 37.24.
• USD/PHP sits slightly off recent highs (57.60), last just under 57.47. Some relief from lower oil prices is likely, although this doesn't appear to benefiting other parts of the region. US-Philippines military exercises will be a focus point given tensions with China.
• USD/IDR spot sits lower, last near 16215 against recent highs of 16288. We are around 0.25% stronger in IDR terms. We have had March trade data print, with the trade surplus at nearly +$4.5bn. This is in line with a higher terms of trade outlook in recent months. Export growth was -4.19% y/y, against a -10.73% forecast. Still most focus is likely to rest on Wednesday's BI decision. The consensus looks for no change, but it could be a close call given recent rupiah weakness.