USD/CNH's Dip Sub 100-day MA Draws Buying Interest

USD/Asia pairs have been mixed today. USD/CNH saw a brief dip sub 7.2700 to fresh multi month lows (also briefly through the simple 100-day MA), but there was no follow through. This saw other pairs find USD support, although there are still some pockets of strength. Tomorrow October inflation data prints for China. Q3 GDP is out in the Philippines, along with Thailand consumer confidence.

• USD/CNH had a brief dip sub 7.2700 but it wasn't sustained. We sit back at 7.2800 in latest dealings (earlier lows were at 7.2666). This dip came amid supportive comments from PBoC Governor Pan around preventing one-sided FX moves and support for property developers and LGFVs. Equity sentiment was a touch positive earlier but now sits weaker post the lunchtime break.
• Dips in 1 month USD/KRW sub 1300 have been supported today. The pair last tracking at session highs of 1306/07, against an earlier low of 1296.93. This came during USD/CNH weakness, but wasn't sustained. Local equities are on the backfoot, the Kospi down 0.80%, the Kosdaq -1.30%. Earlier data showed healthy goods surplus and current account figures for September.
• Spot USD/HKD sits near 7.8170 in latest dealings. This is back close to mid-October lows near 7.8160. A break sub this level could see 7.8100 targeted, while early August lows in the pair rest back at 7.7926. HKD strength is in line with lower US-HK yield differentials, although at the 3 month tenor, the shift lower has been modest. We were last at +15bps, still not sub late Sep lows in the differential. Modestly more positive equity sentiment for China and Hong Kong, with gains in property stocks evident post a meeting between developers and regulators is likely helping HKD at the margins. The same factors have also aided CNH.
• The Rupee has opened dealing little changed from yesterday's closing levels. On Tuesday Oil fell ~4.5%, its weakest day since July as weak trade data from China and a firmer USD weighed on Tuesday. WTI briefly dealt below the $77 handle this morning before paring losses, however the spillover to the Rupee is limited thus far. A reminder that the local docket is thin this week with just September Industrial Production due on Friday. There is no estimate and the prior read was 10.3%.
• The Ringgit is little changed on Tuesday as onshore participants digest the move in US Tsys during the NY session as 2024 rate cut expectations ticked higher. USD/MYR last prints at 4.6705/55. A reminder that the local docket is empty today and also for the remainder of the week.
• The SGD NEER (per Goldman Sachs estimates) is continuing totick away from Monday's cycle highs, however ranges do remain narrow in early trade on Wednesday. We sit ~0.4% below the top of the band. USD/SGD has firmed above the 200-Day EMA ($1.3546) this morning as the post-NFP gains continue to be trimmed and lower Oil prices marginally weigh on the SGD. We sit at $1.3550/55. A reminder that the local docket is empty today and for the remainder of the week.
• USD/IDR has climbed steadily during the afternoon session last near 15640. We are some distance from recent lows (15510), with sentiment remaining at the whim of US yield moves. BI comments have also crossed, with the central bank stating that new FX securities, SVBI, will help curb FX risks in the shallow spot market. The instruments can't be used to buy dollars and won't add to dollar demand during times of stress (BBG).