USD/Asia Pairs Off Highs As Yen Rebounds

USD/Asia pairs are either lower or off earlier session highs. Gains seen have been modest, particularly compared to the gains seen against the USD by the majors. The BBDXY is down 0.35%, as the yen saw a sharp rebound, while AUD is also higher. Equity sentiment in the region is positive, led by the tech side. Tomorrow, the main focus will be on official China PMIs. Also out is South Korea industrial production.

• USD/CNH sits lower, last near 7.2560, nearly 0.20% stronger in CNH terms. USD/CNY is also a touch lwoer, last near 7.2440. Onshore equities have rallied aided by property and tech sentiment. Local bond yields are also sharply higher. These factors, coupled with a sharp turnaround in yen sentiment, has aided the yuan today. Tomorrow, we get a growth update with the official PMI prints for April.
• 1 month USD/KRW sits off earlier highs, the pair taking cues from broader USD/JPY swings. We were close to 1382 in early trade, but now sit back near 1374, little changed for the session. Equity sentiment is firmer as well, aided by tech names, which is likely helping at the margin.
• USD/THB sits close to 37.00, near recent highs. The pair hasn't had a strong beta with respect to broader USD moves today. March customs data was weaker than expected, with exports falling -10.9%y/y, versus -4.0% forecast. Imports were close to expectations, at +5.6%y/y. This was enough to keep the trade balance in deficit territory (-$1163mn, against a $1000mn projected surplus).
• USD/IDR spot sits a little higher, last close to 16250, around 0.20% weaker in rupiah terms. Carry over from a stronger global yield backdrop last week is still impacting sentiment, along with company related dividend outflows. The better global equity backdrop should improve risk appetite for the rupiah if it continues though.