USD/CNH Gets Close To 7.1000, KRW & IDR Lag Somewhat

USD/Asia pairs are lower across the board, albeit to varying degrees. The KRW 1 month NDF is underperforming modestly, likewise for spot IDR (despite the continued sharp pull back in US real yields). USD/CNH has broken to fresh multi month lows sub 7.1100. Equity sentiment is mostly positive in the region, while USD upticks have been faded against the majors. Still to come today is Nov India trade figures.

• USD/CNH's down move has only gained traction in the second half of the Asia Pac Friday session. Earlier highs were at 7.1321. Onshore equities are higher, while HK's bourse surged +3%, amid easing property curbs (announced late yesterday) and a fresh liquidity support via the MLF (the MLF rate was held steady). Onshore equities have struggled somehwat though. Mixed Nov activity data was largely ignored. For USD/CNH we currently track near 7.1100, just above session lows (7.1030). A clean move lower could see early June lows at 7.0670 targeted.
• The 1 month USD/KRW NDF hasn't been able to get back sub 1290 in any meaningful way. The won has underperformed broader higher beta FX gains, and continued offshore equity inflows (+$464.6mn). The Kospi is just off multi month highs (last +0.70%).
• Spot USD/THB is back sub 35.00 but not at fresh lows for Dec. The pair continues its recent high vol run (earlier highs this week were near 35.84). Equities are continuing to recover from recent lows, while offshore investors added $100mn to local shares yesterday. Dec as a whole still remains negative from a flow standpoint. Bond outflows have also been recorded in Dec to date.
• USD/IDR spot has struggled to see much meaningful downside, the pair last at 15485. The rupiah has underperformed the pull back in US real yields post the Fed this week. Nov trade figures were close to expectations. The trade surplus at $2412m ($2970mn forecast). IDR bulls will target a move back sub 15400 to late Nov lows.
• USD/PHP maintains its low beta with respect to overall USD moves. The pair is down modesty to 55.65/70 today, around 0.20% firmer in PHP terms. The PHP has lagged the Asia region in the past week. BSP Governor Remolona stated earlier that the central bank didn't overtighten and it would stick with its hawkish bias. On PHP the Governor stated the BSP is 'somewhat comfortable' with current levels (CNBC).