USD/Asia Dips Still Supported

USD/Asia strength has been a little more uniform today. Like the majors though, the dollar is down from best levels compared with earlier in the session. The market bias is likely to remain buying dips in USD/Asia pairs, particularly in North East Asia.

• The much stronger than expected CNY fixing did little to calm USD/CNH, with the pair following USD/JPY’s path for most of the session. We got just above 6.9950, but we are now back sub 6.9850 region. China trade figures disappointed in August, with both export and imports weaker than expected, which added to the bearish mood. FX reserves are still due later today.
• USD/KRW is off recent highs, now back to 1385 from earlier +1388 levels. The South Korean Finance Minister warned against one-sided FX moves. This has aided the won, but is unlikely to give lasting relief. South Korean and Taiwan equities have been among the weakest in the region, both down over 1.50%.
• SGD and MYR are both weaker against the USD but to a lesser degree than KRW and TWD (USD/TWD is further 0.50% to 30.93). USD/MYR has found some resistance ahead of 4.5050, note also BNM is expected to hike by 25bps tomorrow (see this link for more details).
• USD/THB is higher (36.73) but remains below 37.00 for now. The Thai constitutional court will brief the media later today about tomorrow's special hearing on the plea challenging Prayuth Chan-Ocha's ability to stay on as PM,
• USD/INR (79.92) and USD/IDR (14923) are higher, but both currencies are outperforming broader USD strength.