USD/Asia Pairs Sink, China/HK Out On Monday

USD/Asia pairs are lower across the board, in line with the DXY -0.80% fall. Positive equity gains, coupled with slightly lower US yields have helped from a cross asset standpoint.

• USD/CNH is back sub 6.9400, -0.35% for the session so far. The fixing was again on the firm side. This week has seen the fixing bias nearly double compared to last week. China inflation printed much weaker than expected, underscoring the weak domestic demand backdrop. This hasn't impacted USD/CNH but the yuan has underperformed against G10. The US is ramping up its tech warning around investments into China, but this hasn't impacted onshore sentiment. Onshore equities are higher, led by the property sector.
• Note China and Hong Kong markets are closed on Monday.
• USD/KRW and USD/TWD are both lower in the 1 month NDF space, even with onshore markets shut today.
• USD/MYR is back below 4.5000. As expected BNM hike yesterday, but the outlook was somewhat dovish, given the central bank expects inflation to peak in Q3 and sees downside growth risks.
• USD/PHP is sharply lower, back down through 56.90, in line with broad based USD weakness. The trade figures were close to expectations in terms of the deficit (-$5.93bn) but export growth fell -4.2% y/y, well below expectations.
• USD/IDR is lower, back to 14852, -45.5 figs for the session. BI officials noted that they haven't been intervening much in the FX markets and that FX demand/supply is manageable.