USD/CNH Back To Pre US-CPI Levels

higher US yields and a weaker equity backdrop haven't helped. Better than expected Q4 China GDP data and Dec activity prints didn't have a lasting positive impact on sentiment. The won and Taiwan dollar have outperformed slightly. SEA FX are all weaker but away from worst levels. Outside of Malaysia trade figures tomorrow, the data calendar is light in the region.

• USD/CNH continues to trade with a firmer bias. The pair just off fresh highs at the time of writing around the 6.7740/45 level, +0.45% for the session. This puts the pair above highs from last Thursday, wiping out CNH gains post the US print. Resistance should be evident ahead of the 6.8000 level. Some profit taking ahead of next week's LNY break may be also be a factor.
• The won has seemingly seen more benefit from the better than expected China data, with the 1 month NDF finding selling interest above 1240 (last at 1238). Onshore equities are weaker, while net outflows to local equities have also returned. 1 month USD/TWD is holding above 30.20, still sub NY closing levels. Taiwan equities have outperformed so far today, only down modestly.
• Singapore export data was weaker than expected, pushing the case for no further change in the MAS policy stance. Spot USD/SGD has pushed higher, last above 1.3220. The SGD NEER is higher for the session though, but remains below 2022 recent highs, per Goldman Sachs estimates.
• USD/IDR is back close to 15150, +0.70% higher for the session and back above the 200-day MA (15061.43). This follows a rapid round of IDR gains since mid last week. The country expects over $30bn in investment for EV batteries until 2026.
• USD/INR is back above the 100-day MA (81.66), last at 81.8550. Note the 50-day MA comes in at 82.115. USD/THB is back above 33.00, last at 33.085, -0.30% weaker in baht terms for the session.