USD/Asia Pairs Seeing Some Downside, But Follow Through Limited

Price action in USD/Asia pairs is reasonably steady in the first part of Friday dealings. There have been bouts of USD softness but with little follow through to the downside. Regional equity sentiment is mixed with South Korean markets outperforming following Samsung's earnings beat, but China & Hong Kong markets are weaker.

• USD/CNH sits little changed, last near 7.2920. We saw modest downside as the USD/CNY fixing moved back sub 7.1300, but there was little follow through. The CSI 300 is off over 1% back near 3400 in index terms. We are back close too unchanged for the year now. There doesn't appear a direct fresh catalyst for this move other than a continuation of recent poorer momentum amid on-going growth concerns. Firmer local bond yields as the PBoC readies plans to curb pressure in the space hasn't shifted sentiment much either
• Spot USD/KRW dipped earlier, but found selling interest under 1380 (lows were at 1376.75). We are now back around 1379. The Kospi is more than 1.3% higher, aided by the Samsung earnings beat. The won is only 0.10% firmer for the session now. Earlier data showed strong current account and goods surplus positions for May.
• Spot USD/PHP is unchanged so underperforming the softer USD trends seen against the majors. Earlier data showed June CPI was a touch below forecasts, which likes raises the odds of an August cut from the BSP. The pair was last near 58.58.
• Elsewhere trends have been fairly steady. USD/IDR is down under 16330, which close to recent lows. The government set fiscal deficit targets for next year at 2.29-2.82% of GDP. BBG noted the deficit may be smaller than feared (see this link), but Indonesia's fiscal deficit will remain a market watch point.
• USD/THB is down a touch last near 36.60.