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USD Softer, CPI Prints In Focus Tomorrow

ASIA FX

Asian FX has gained a positive footing through the early parts of the afternoon session. Liquidity is a little lighter today, with China remaining out, but also joined by Hong Kong today. Still, the positive tone to equities in the region is clearly spilling over to FX to some degree. Regional currencies have outperformed broader USD moves against the majors as well. South Korean, Philippines and Thailand CPI prints are in focus tomorrow.

  • USD/CNH is sub 7.0900, through overnight lows, last tracking around 7.0750. We are close to lows from late last week.
  • USD/KRW couldn't gain much downside traction early, but is back below 1430 this afternoon (last 1428). We topped out above 1436 on North Korean tensions and a weaker PMI print for September, but firmer equities have helped as the session progressed.
  • USD/INR is around 0.55% lower since the onshore open. The pair last traded 81.40/45. Reported intervention flows overnight may suggest some reluctance to see a sharp breakthrough of the 82.00 level. Onshore equities are also up over 2%.
  • USD/IDR is lower, -35figs to 15268 last. This is in line with the broader trend seen in the region. We were above 15300 in early trade. Indonesia's headline inflation fell virtually in line with expectations in September, but still printed a seven-year high. Still, Bank Indonesia is focusing on core prices, which grew +3.21% Y/Y and missed the +3.50% median estimate.
  • The baht is an outperformer within the region. We are +1% up for the session, partly due to catch up from overnight moves in the USD. We last changed hands at 37.715. Thailand's monthly CPI data will cross the wires tomorrow, with headline inflation expected to have eased to +6.58% Y/Y in September from +7.86% prior. Still, core CPI may have quickened to +3.20% Y/Y from +3.15%, according to a Bloomberg survey of analysts.

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