USD Weakness Not Uniform To Start The Week

Not all USD/Asia pairs are following the lead from the G10 space, with a number of pairs bucking the softer USD trend. USD/CNH is the mostly notable seeing some support today. In terms of tomorrow's session, the focus is likely to rest on the China LPR decisions, with the consensus looking for no change, although some forecasters see risks of the 5yr rate coming down by 10bps (currently at 4.30%). Also out is Taiwan export orders.

• USD/CNH has tracked a narrow range today, last above 6.9850, slightly higher for the session. The CNY fix came out a touch weaker than expected, while onshore equities are lower. Concern around the domestic covid situation outweighing optimism on the growth outlook for next year.
• 1 month USD/KRW has traded with a softer bias for much of the session, but we are now back to the 1300 level, still -0.70% for the session. Onshore equities are weaker (-0.50%), but hedging flows by NPS could be providing a positive offset. Late last week it was announced NPS would raise its hedges on offshore assets to 10% from the current 0.
• USD/THB is down around 0.35%, with the pair continuing to find selling interest above 35.00. We last tracked around 34.85, slightly above session lows around 34.735. BoT commentary reiterated recent guidance on the monetary policy outlook.
• USD/IDR hasn't been unable to find much downside traction. The pair last near 15630, +0.20% on closing levels from last week. Onshore equities are weaker, -0.40% at this stage. Offshore investors have sold close to a $1bn of local shares so far this month. The BI decision comes later this week, with +25bps expected.
• USD/PHP is lower, last near 55.41, -0.28% for the session so far. FX markets are shrugging off a weaker equity lead (-1.30%), with the authorities talking about a robust growth backdrop in Q4., which may help the country exceed its 6.5-7.5% growth target, a positive offset. Remittance inflows ahead of year end is another positive being cited.