USD/Asia Pairs Mostly Higher, IDR & THB Among The Weakest Performers

Most USD/Asia pairs have seen dollar support emerge as the Wednesday session has progressed. CNH has lost modest ground (back to 7.1750/60), while spot KRW is down around 0.50%, the 1 month USD/KRW NDF up modestly from NY closing levels on Tuesday (last near 1337.50).

• Equity sentiment is mixed in the region, while higher beta plays in the G10 space, like AUD and NZD are down around 0.15%.
• Yesterday equity flows were negative for most markets in the region (except South Korea and Taiwan).
• US nominal yields are relatively steady so far in Wednesday trade, but the 10yr real yield did close at 1.85% in US Tuesday trade, fresh highs back to mid Dec last year. Some carry over USD support may be evident from these trends today, along with catch up to higher USD index levels.
• THB weakness and IDR losses are evident in SEA. USD/THB spot is back to 35.80/85, testing mid Dec highs from last year. Spot IDR is 0.6% weaker to 15720/25, while the 1 month NDF is steady around 15730, so this is largely a catch up play for the spot market.
• Still, this is back to highs from the first half of Nov last year. 15800 is the next potential upside target.
• USD gains elsewhere are generally more muted. USD/SGD is steady near 1.3410.