USD Support On Dips Post Stronger CNY Fixing

USD/Asia pairs are lower, aided by the stronger CNY fixing, but we are up from best levels. USD weakness has been slightly more evident against NEA FX, compared to SEA FX. Spot USD/CNY broke sub 7.2000 in earlier trade, but now sits back above this level. Still to come later today is Taiwan industrial production. Looking to tomorrow's calendar, we have consumer confidence early in South Korea, Thailand customs trade data and Singapore IP.

• All eyes were on the USD/CNY fix. In the event we printed lower, just back under 7.1000. This went against expectations of a higher result given the weaker CNY spot backdrop and higher USD index levels through Friday. This was a clear signal to the market of pushback to Friday's price action. USD/CNY spot fell to lows of 7.1943, completely unwinding Friday's gains. Aiding the move was headlines of state bank sellings USDs. We sit back near 7.2045 this afternoon though. USD/CNH got to 7.2325, which was around earlier highs in the pair from Jan/Feb this year. We have also recovered ground back to 7.2460/65.
• 1 month USD/KRW fell in sympathy with USD/CNH, but we found support sub the 1333 level and sit back near 1339 in current trade. Onshore spot is back above 1340. 1 month USD/TWD also fell, but sits comfortably above earlier lows, last at 31.85.
• The baht weakened sharply against the greenback on Friday by 0.9% reaching a high of 36.48 but today it pulled back a bit to a low of 36.23 helped by a lower US dollar and higher gold prices. USD/THB is currently little changed at 36.39 and is 1.6% higher over the last week as outflows continued.
• USD/PHP hasn't seen much downside, the pair last near 56.35, which is close to recent highs. The Bangko Sentral ng Pilipinas has rescheduled the Monetary Board's rate-setting meeting from April 4 to April 8 to await the release of March CPI data, which will be available on April 5. The press briefing to announce the rate decision will also take place on April 8.