USD/Asia Pairs Struggle For Fresh Downside

The USD/Asia picture is mixed today. Outside of baht, and onshore CNY and TWD, there hasn't been a great deal of momentum against the USD. China markets returning from the LNY break haven't delivered the equity move that might have been hoped for, with tech sentiment softer. Tomorrow, Jan China official PMIs print, while South Korean IP figures are also due. Taiwan export orders are also out, along with Singapore unemployment and Thailand trade figures.

• USD/CNH hasn't been able to break sub 6.7400, while moves towards 6.7600 have drawn selling interest. The equity rebound has run of momentum as the session progressed, particularly in the tech space, which has likely helped keep the pair within recent ranges. The CNY fixing remained on the firm side of expectations.
• 1 month USD/KRW has traded with a softer bias, but found support sub 1226. Onshore equities are weaker (-1.1%), while offshore investors have been small sellers of local equities. An offset has come from the stronger yen, which has outperformed in the G10 space.
• Spot USD/TWD has gapped lower in the first day of trading since 19th of Jan. We hit a low of 30.13, but now sit slightly higher near 30.17. Still, this is +0.65% firmer in TWD terms since the last close. This is lows back to mid-August last year. The 1 month NDF sits under 30.00, although moves sub this level haven't been sustained in recent months. TWD continues to follow the improved equity tone. The Taiex is up around 3.8% today, playing catch up to the improved mood global equities, particularly the tech space since markets were last open.
• USD/INR is trading with a firmer bias since the open, with the pair last at 81.70/75. The pair hasn't been above 82.00 since the 10th of Jan, so there might be some selling interest ahead of this level. There is also the 20-day EMA at 81.80, the 50 days at 81.95. On the downside the 100-day EMA comes in at 81.49. INR continues to lag the firmer ADXY backdrop. Equity market wobbles following the Adani saga are not helping, although local bourses are away from worst levels, after opening down 1%.
• USD/THB has tracked lower, last around 32.74, +0.40% in baht terms versus Friday's close. We did see some support ahead of the 32.70 level. For now, the pair remains within recent ranges.