Free Trial

USD/CNH Steady Despite Equity Weakness, USD/KRW 1 Month Breaks Higher

ASIA FX

A firmer bias has been evident in USD/Asia pairs today, but we generally sit away from session highs in latest dealings. USD/CNH sits close to 7.2400, little changed for the session, despite reports of LGFV debt relief. 1 month USD/KRW has broken higher. In SEA, IDR sits close to recent highs, while USD/SGD is finding selling interest above 1.3500. India CPI is out next Monday (IP is out later today), while we still await the China July aggregate credit figures.

  • USD/CNH has traded a tight range. We got to 7.2340 not long after the firmer than expected CNY fixing. Equity sentiment has been weaker, despite further reports around LGFV debt relief and the regulators meeting with property developers. China equity indices are trying to claw back losses post the lunch time break, but remain comfortably in negative territory for now. USD/CNH was last near 7.2400.
  • 1 month USD/KRW broke above 1320, but saw selling interest around 1322. We sit close to 1320 in latest dealings. Onshore equities are down a touch in terms of the Kospi. Earlier data showed the first 10-days of August export data still down around -15% in y/y terms.
  • USD/SGD is still finding selling interest above 1.3500. The pair was last around 1.3485/90. The final Q2 GDP print came in a touch below expectations, at 0.1%, versus the projected 0.4%. Singapore avoided a technical recession, albeit just (Q1 growth was -0.4%). In y/y terms, growth was +0.5%, versus 0.8% expected. The government has revised down its 2023 growth forecast range to 0.5-1.5% from 0.5-2.5%.
  • USD/IDR is back under 15220, right around the simple 200-day MA. We saw a very large net equity outflow from offshore investors yesterday, just under $1.2bn, the largest single daily outflow since end May 2005. Local equities have been largely tracking sideways in recent trade, the JCI under the 6900 level.
  • USD/INR sits away from recent highs, last near 82.75, but has tracked sideways in early dealings today.
  • USD/THB is holding above 35.00, last near 35.12. Earlier highs were close to 35.20. On the data front, consumer confidence edged down in July, back to 55.6 from 56.7 in June. This is the first downshift since the middle of last year.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.