USD/Asia Recoup Some Of Monday's Losses

USD/Asia pairs are mostly higher, unwinding a proportion of yesterday's losses, as the USD finds some support and equity sentiment falters somewhat. Gains have been fairly uniform, although pairs remain within recent ranges. Tomorrow, South Korea manufacturing and non-manufacturing sentiment indices are due, along with short term external debt. Taiwan Q4 GDP revisions are also on tap.

• USD/CNH was sub 6.8600 in early trade, but now sits back closer to 6.8800, around 0.30% weaker versus Monday closing levels. The early equity bounce, on property sector optimism has faded somewhat, with aggregate indices back close to flat. The CNY fixing remained close to neutral.
• 1 month USD/KRW is close to unchanged, last around 1295, although spot is a little higher at 1296. First 20-days trade data for Feb didn't suggest a strong turnaround in export momentum, with chip exports still quite weak. Consumer sentiment edged down, but inflation expectations ticked higher for Feb. The BoK decision is due on Thursday.
• The SGD NEER (per Goldman Sachs estimates) is marginally softer today, NEER printed a cycle high on Friday before moderating in recent dealing. However, we do sit ~0.5% below the top of the trading band, slightly more elevated compared to early Feb levels. USD/SGD is slightly higher, in line with broader USD trends, last around 1.3375/80. Thursday's Jan CPI print is the next major event risk, with the market looking for stronger inflation pressures as the GST was hiked at the start of the year.
• USD/IDR is slightly higher, last sitting close to 15175/80 (+0.15%). This unwinds part of yesterday's fall of -0.30%. The pair remains very much within recent ranges though and wedged between key EMAs. Resistance appears above 15200, while the 20 and 200 day EMAs continue to drift higher (sitting 15144 for 20 day, 15132 for the 200 day). The data calendar is empty until the start of March. S&P noted that the distress in Indonesia's bond market is likely to be more a domestic issue, rather than offshore issue (see this link for more details), as most maturities are in IDR, rather than dollars. This follows onshore developer Waskita deferring bond payments.
• USD/THB has recouped yesterday's losses and printed at fresh highs YTD. We were last at 34.64, +0.60% higher for the session. There didn't appear a fundamental catalyst for the rebound higher, although portfolio outflows from offshore investors continue across both the bond (-$63.5mn) and equity (-$86.7mn) space for Monday's session.