USD/Asia Pairs Push Higher, THB & Won Underperform

USD/Asia pairs are higher across the board, albeit to varying degrees. A generally weaker regional equity tone, coupled with higher USD levels against the majors (particularly versus NZD post the RBNZ )are the factors aiding USD strength. THB, KRW and IDR are the weakest performers, while CNH and MYR are showing steadier trends. Tomorrow, we have Thailand IP and current account reads. Taiwan IP and Q4 GDP is also out, along with Indian GDP figures as well.

• USD/CNH has mostly crept higher during the session. The pair was last near 7.2170, close to Feb 20 highs. Local equity sentiment has been volatile but markets have struggled for positive territory. Spot USD/CNY remains wedged under 7.2000, which appears to be a short term line in the sand ahead of the 'Two Sessions' in early March.
• 1 month USD/KRW has mostly firmed higher, but has remained within Feb ranges. The 1 month NDF is in the 1333/34 range currently, around 0.20% weaker in won terms. Onshore equities have bucked the softer trend elsewhere, the Kospi up 0.75% at this stage. Meta head Mark Zuckerberg will visit Seoul to discusses AI with Samsung, is likely aiding equity sentiment but there has been little positive spill over to the won.
• USD/THB has spent much of the session on the front foot, the pair last near 36.00, around 0.5% weaker for the session so far. The pair has not been able to maintain moves above this level in Feb to date. Baht volatility remains more elevated compared to the rest of the region. Local Thailand stocks are weaker today (-0.6%). Offshore investors also sold local equities yesterday.
• USD/IDR spot has crept higher, last near 15675, which is close to recent highs, but still comfortably below earlier Feb highs close to 15800. Regional equity losses, coupled with a weaker portfolio backdrop are likely driving some caution in IDR, albeit within contained ranges.
• Spot USD/MYR sits a touch above earlier lows, last near 4.7615. This is close to late Tuesday lows for the pair. We were up close to 0.35% in MYR terms for yesterday's session, which came post the central bank's verbal rhetoric that the ringgit should be trading at stronger levels. The recent move lower now sees us challenging the 20-day EMA. We haven't spent time below this support level since the early stages of Jan this year.