USD/Asia Pairs Up From Earlier Lows

USD/Asia pairs haven't been able to sustain lower levels, with most pairs recovering from earlier lows. Equity sentiment has been mixed throughout the region, while the USD has had a quiet session against the majors. Tomorrow we may get China aggregate finance data (9-15th of Feb is the release window), while Thailand consumer confidence is out, along with Taiwan CPI.

• USD/CNH tried to sustain a break below 6.7800 in early trade, but we now sit back above 6.7860. Onshore equities have struggled for upside traction, albeit with modest losses so far. The CNY fixing was close to neutral.
• 1 month USD/KRW is back towards the upper end of its recent range, last near 1259. Moves above 1260 have drawn selling interest in recent sessions. The +1.25% gain for local equities hasn't led to much currency support. Dec current account data didn't shift market sentiment earlier.
• USD/INR blipped lower on a hawkish +25bps rate hike, with the central bank still focused on withdrawal of accommodation, with some in the market looking for a shift to neutral. Still, this proved to be a short lived INR positive, with support around the 82.60 level. We now sit back at 82.70/75.
• USD/IDR is lower, back to 15120/25. We are very close to the 20-day EMA (15109), while the 200-day sits slightly higher at 15130. The rupiah's rebound is broadly in line with moves elsewhere in South East Asia, but is away from earlier session lows near 15100. Jan consumer confidence printed, coming in at 123.0, from 119.9 prior. We are at 5 month highs, but still below 2021 highs near 129.0.
• USD/THB opened lower this morning, but found some support around the 33.40 level. We last tracked close to 33.53, around 0.25% stronger in baht terms versus yesterday's close. Still the pair is in new higher range of 33.40/33.75, compared to 32.60/33.00 through much of late January/early Feb. On the upside the 50-day EMA comes in close to 34.00, while the 20-day is around 33.26 on the downside. Portfolio outflows are a short term baht headwind, while the BoT minutes suggested further hikes are coming.