Weakness Across The Board As USD/CNY Breaks Above 7.2000

USD/Asia pairs are higher across the board. Much of the focus has been on the yuan, after USD/CNY broke above resistance at 7.2000 for the first time this year. Both spot KRW and THB have lost 1%, while IDR is off by around 0.80%. The USD is firmer against the majors as well, the dollar index back above pre FOMC levels. Regional equities are lower for the most part, particularly in China/HK amid earnings concerns and fresh regulatory fears coming out of the US.

• Spot USD/CNY broke above 7.2000 not long after the open. The USD/CNY fix was set above 7.1000, while the fixing error widened versus yesterday's outcome. Headlines crossed from Reuters that state banks were USD sellers post this break, but Bloomberg noted such flows were absent close to the open. Spot USD/CNY is around 7.2250, close to session highs. USD/CNH spot was last above 7.2600, fresh highs back to mid Nov last year. Onshore equities are also weaker, along with sharp losses in HK, have also weighed.
• Spot USD/KRW is around 1 higher, but the pair found selling interest above 13040. The pair was last near 1337. The 1 month NDF was last near 1335, modestly weaker in won terms versus end Thursday levels in NY.
• Spot USD/THB broke to fresh highs going back to late 2023. The pair got to 36.48, but we now sit lower at 36.38, still 0.90% weaker in baht terms for the session. Earlier comments by a BoT official hinted that the neutral bias by the central bank may be re-assessed. The weaker baht wasn't overly concerning though.
• USD/IDR is also up strongly last near 15790, 0.80% weaker in rupiah terms. This is back to early Feb levels. IDR has been weighed by broader risk aversion.