Weaker Across The Board

USD/Asia pairs are higher across board today, albeit to varying degrees. USD/CNH is back to fresh highs last seen in early Jan, while the won has lost around 1%. Still to come is Indian CPI data, which will be watched closely in terms of the RBI outlook. Tomorrow Indian wholesale prices are due, while the Singapore 2023 budget will be the other focus point.

• USD/CNH has spent much of the session on the front foot, although the pair has found selling interest above 6.8400. We touched a high of 6.8463, but now sit back closer to 6.8400. Onshore equities have been resilient to the threat of increased US-China tensions. CNH has weakened in sympathy with the majors, particularly the yen, which is off by around 0.60% so far today. Note the 50 and 200-day EMAs come in just above the 6.8600 level.
• 1 month USD/KRW has also risen, with negative spill over likely from weaker yen levels. The 1 month NDF got close to 1277 before settling somewhat. We are now through the 50-day EMA near 1268. Onshore equities are weaker, the Kospi off by 0.80%. Early export trends for Feb still look fairly weak.
• USD/SGD is a little higher from today's opening levels, last printing at $1.3325. The NEER recovered from earlier lows (per Goldman Sachs estimates), last around 135.91. SGD has outperformer broader USD strength today. Q4 GDP was on the wires this morning, with the final QoQ figure printing at 0.1%, the Bloomberg survey median estimate was 0.3%. The YoY figure was 2.1% vs 2.3% exp. The government kept its GDP growth forecast for 2023 unchanged, (0.5-2.5%), the same as what the PM stated at the end of 2022. Tomorrow the government delivers the 2023 budget.
• USD/INR has at 82.70/75, ~0.3% firmer in today's trading, although we sit slightly lower now, back under 82.70. INR is following USD/Asia pairs higher as the greenback starts the week on the front foot. Equity Outflows continued, in the week up to Thursday ~$442mn in domestic equities sold by Global Investors. There was ~$450mn of bonds sold by overseas investors in the same period however the net amount sold in February is flat. Technicals remain bullish, bulls look to break high from 7 Feb (82.8) to target 83. Bears first target a break of the 20-Day EMA (82.18). On the wires today we have Jan CPI, the Bloomberg survey median estimate is 6.00% and the prior read was 5.72%.
• USD/IDR continues to track higher, the pair last near 15215, +0.50% above closing levels from Friday. The combination of weaker global equity sentiment and higher core yields will be weighing, particularly ahead of tomorrow's US CPI print. The pair is comfortably above the 20 and 200 day EMAs, while the 50 and 100 day EMAs sit at 1265 and 15285 respectively above.