USD/Asia Pairs Mostly Higher

Most USD/Asia pairs are firmer, in line with higher USD index levels (BBDXY +0.15%). However, most of this is indicative of weaker yen levels, rather than broad based USD gains. Equity indices are mostly higher, but away from best levels. This, along with US yields moving off intra-day highs has helped curb USD gains. Still to come is the BoT decision, with +25bps expected. Tomorrow, South Korean manufacturing and non-manufacturing sentiment readings are due, in an otherwise quiet session.

• USD/CNH found selling interest above 6.8900 again, but is only modestly below this level currently (last 6.8870/80). Onshore equities are mixed, with not much positive follow through from surging Alibaba shares, which follows re-organization plans. US-China rhetoric remains elevated ahead of Taiwan President Tsai's expected stop over (March 29-30 in NY, then a week later in Los Angeles).
• 1 month USD/KRW is above NY closing from Tuesday, but remains sub 1300, last near 1297. Consumer sentiment rose to a 9 month high this month, while inflation expectations edged down ahead of CPI data next week. The South Korea authorities are looking at ways to boost domestic spending, including attractive more foreign tourists.
• Spot USD/TWD is a touch higher, last above 30.41. Local equities are only modestly higher (+0.15%), despite positive Micron (A US chipmaker) news after the Tuesday US close. The company revised higher expected sales for Q3. USD/TWD bulls will look for a move back through 30.50, while recent lows have been evident around the 30.30 region.
• USD/INR prints at 82.25/30, ~0.15% firmer in early trade. The Rupee is paring gains seen in the early part of the week, a low of 82.16 was seen yesterday. Bulls first look to break the 20-Day EMA (82.40) from here they target 83 handle. Bears target 200-Day EMA (80.93). A reminder that Indian markets are closed on Thursday for the observance of a national holiday.
• The SGD NEER (per Goldman Sachs estimates) is marginally firmer this morning, we remain well within recent ranges and below cycle highs seen last week. We sit ~0.5% off the upper end of the band. USD/SGD is ~0.1% firmer this morning, last printing at $1.3280/90. The pair is following the broader USD/Asia trend thus far. Bulls first look to break the 20-Day EMA ($1.3369) from here they can target the monthly high at $1.3576. The next downside target for bears is the 2023 low at $1.3032.
• USD/THB is within recent ranges ahead of the upcoming BoT decision later. The pair last tracked around the 34.30/35 region, slightly weaker in baht terms for the session, but in line with regional trends. The pair is wedged between the simple 50-day MA, which is close to 34.00, while on the topside, the 100-day MA is at 34.52. Some EMAs sit slightly higher, relative to current spot, the 50-day near 34.35, the 20-day near 34.39. If the BoT delivers a hike as expected, (19 out of 22 economists surveyed by Bloomberg look for a 25bps hike, the remainder forecast no change), the focus is likely to rest on BoT's language in the statement. Many don't expect a further hike at the next meeting in May.