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USD/Asia Pairs Mostly Up From Earlier Lows, USD/CNY Spot Supported On Dips

ASIA FX

USD/Asia pairs are seeing downside momentum in Thursday dealings, albeit we are away from best levels. This is line with majors, with broader USD softness earlier not seeing fresh much follow through. Regional equity markets are mostly up as well, adding to the risk on feel. China markets have weakened though. CNH remains a laggard in terms of broader USD trends. KRW and THB spot have seen the strongest gains so far today.

  • USD/CNH has been supported on moves sub 7.3000, lagging the slight softness in the USD indices. USD/CNY spot is relatively steady, with dips under 7.2700 supported so far. As we noted earlier a close to unchanged USD/CNY fixing was unlikely to encourage too much positive yuan momentum. For USD/CNH intra-session lows from Wednesday came in at 7.2920. Equity sentiment continues to be weak for onshore China markets, with the recent property rebound stalling.
  • Spot USD/KRW is lower by around 0.35% at this stage. The pair was last near 1382, slightly up from session lows (1380.2). This leaves us sub intra-session lows from Wednesday in the pair. The won was an underperformer through Wednesday's session and with the positive equity tone we may be seeing some catch up unfold today. The pair is testing the 20-day EMA support zone, but the 50-day sits further south near 1373. Focus next week will be on the BoK decision, no change is expected, but dovish leanings may emerge.
  • Spot USD/THB is off nearly 0.40% and back to 36.60/65. This leaves within recent ranges, as early June lows came in around 36.325.
  • USD/IDR is back to 16350, around 0.10% stronger in IDR terms. Earlier lows came close to the 20-day EMA support zone (around 16330). We haven't been sub this support level since May.
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USD/Asia pairs are seeing downside momentum in Thursday dealings, albeit we are away from best levels. This is line with majors, with broader USD softness earlier not seeing fresh much follow through. Regional equity markets are mostly up as well, adding to the risk on feel. China markets have weakened though. CNH remains a laggard in terms of broader USD trends. KRW and THB spot have seen the strongest gains so far today.

  • USD/CNH has been supported on moves sub 7.3000, lagging the slight softness in the USD indices. USD/CNY spot is relatively steady, with dips under 7.2700 supported so far. As we noted earlier a close to unchanged USD/CNY fixing was unlikely to encourage too much positive yuan momentum. For USD/CNH intra-session lows from Wednesday came in at 7.2920. Equity sentiment continues to be weak for onshore China markets, with the recent property rebound stalling.
  • Spot USD/KRW is lower by around 0.35% at this stage. The pair was last near 1382, slightly up from session lows (1380.2). This leaves us sub intra-session lows from Wednesday in the pair. The won was an underperformer through Wednesday's session and with the positive equity tone we may be seeing some catch up unfold today. The pair is testing the 20-day EMA support zone, but the 50-day sits further south near 1373. Focus next week will be on the BoK decision, no change is expected, but dovish leanings may emerge.
  • Spot USD/THB is off nearly 0.40% and back to 36.60/65. This leaves within recent ranges, as early June lows came in around 36.325.
  • USD/IDR is back to 16350, around 0.10% stronger in IDR terms. Earlier lows came close to the 20-day EMA support zone (around 16330). We haven't been sub this support level since May.