USD/CNY To Fresh Cyclical Highs

Most USD/Asia pairs are higher, with continued focus on USD/CNH. Only IDR has managed spot gains against the USD today. Several regional markets have been closed for holidays though - Singapore, Malaysia, Thailand & India. The main data focus tomorrow will be the September Singapore CPI print.

• The CNY fixing outcome, which today printed at 7.1230, is opening the door for slightly larger yuan depreciation pressures. Onshore spot is above 7.2500, fresh cyclical highs, but hasn't seen great follow through momentum. USD/CNH is back under 7.2700. China Q3 GDP beat estimates, but data for retail spending and the property sector still disappointed, relative to expectations.
• USD/KRW 1 month is higher, +0.50% on closing levels from the end of last week. We did find selling interest above 1140 though (last at 1436). The Kospi is off its highs, but +1% on closing levels form last week. Fresh support to credit markets has likely aided sentiment today. The authorities have pledged up to $35bn in funding support, following a recent missed payment in the space and signs of market stress.
• Spot USD/IDR deals at IDR15,578, down -55 figs on the day, with bears looking for a deeper retreat towards Oct 5/Sep 30 lows of 15,162/15,150. Bulls target the 16,000 figure. Foreign investors were net buyers of $75.41mn last Friday, with the Jakarta Comp testing its 100-DMA to the upside. The local data docket is virtually empty during the remainder of the week.
• BSP Gov Diokno drew a line in the sand at 60, vowing aggressive action to defend that level via a combination of interest-rate hikes and interventions in the currency markets. The impact on the PHP has been limited, with comments on the effective cap on peso weakness being mere reiteration of remarks from last Friday. USD/PHP remains slightly below recent highs, last at 58.77.