USD/Asia Pairs Off Session Highs, China PMIs On Tap Tomorrow

USD/Asia pairs are comfortably away from earlier session highs. USD/CNH got to 6.9122, but is now back close to 6.8900. Other pairs have shown a similar trajectory. Cross asset signals have been muted, with US equity futures close to flat, while yields are up a touch (1.1-2.4bps across the curve). Regional equities are mixed and underperforming the positive lead from US/EU markets on Wednesday. Tomorrow, the focus will be on official China PMI prints for March. South Korean IP also prints, along with Taiwan's PMI and Thailand trade figures.

• USD/CNH breached the 6.9100 level amid broad based USD gains and not long after the onshore open. The neutral CNY fix may have been a factor, but we saw little upside from there. The pair is now back to 6.8900/30, little changed for the session. China Premier Li gave a wide ranging speech at the Boao forum, stating China's economic momentum remains firm (March is even better than January/February).
• 1 month USD/KRW remains within recent ranges, finding selling interest closer to 1305 at the start of the session. We were last around 1301 for the pair. Onshore equities have outperformed, up 0.7% so far today. Earlier manufacturing and non-manufacturing sentiment readings for April showed further improvement.
• Spot USD/TWD is a touch higher, last above 30.48, highs back to the 22nd of March. USD/SGD has also drifted a touch higher, last near 1.3300, although this is down from session highs near 1.3315.
• USD/THB has been the strongest gainer for the session, up +0.60% at one stage. Form highs though of 34.34, we now sit back at 34.25 (+0.35% for the session). Still, the baht comfortably remains the best performer within Asia FX March to date. Tourism remains key for the baht. For the period Jan 1 to March 27, the country saw 6.15mln visitors, slightly above the government's 6mln target. Annualizing this rate for 2023 leaves us at the bottom end of the 25-30mil forecast, but no doubt the authorities are hopeful for a further pick up in arrivals as we progress through the year. Trade figures for Feb were a touch better than expected, -4.7% y/y exports (-7.00% forecast), while the trade deficit came in at -$1113mn, -$1414mn forecast.
• USD/IDR upticks have been faded, with the pair printed fresh lows under 15060 in recent dealings.