USD/Asia Pairs Edge Higher

It has been a fairly quiet start to the week for USD/Asia markets, with China, Hong Kong and South Korea all out on holidays. Most pairs have edged higher though, in line with a weaker JPY trend against the USD, and slightly higher UST yields.

• USD/CNH opened up softer as EUR/USD spiked above 1.0100 in early trade. However, from sub 6.9300 we moved back up to 6.9400/50, which is where we currently sit. Not surprisingly, the US-China yield differential is still trending in favor of the USD. Onshore Covid cases are trending down, but some outbreaks in Beijing will be causing concern.
• 1 month USD/KRW has been quiet given the onshore holiday. Dips sub 1380 have been supported.
• USD/INR spot is grinding higher, last just under 79.70. Later today we get CPI and IP figures, with inflation carrying more weight from an RBI standpoint. RBI FX reserves continued to fall to early September.
• USD/IDR has added 13.5 figs so far to last trade at IDR14,8443. Bank Indonesia sees this month's CPI inflation at +0.77% M/M based on preliminary survey data. FinMin Indrawati will speak at a Bloomberg forum this afternoon. Looking further afield, Indonesia's trade data will be published on Thursday.
• USD/PHP is higher, with spot pushing back above 57.00 today (last at 57.06). Onshore equities are higher, while we continue to see net equity inflows. However, negative sentiment may have carried over from last week's trade figures.
• USD/THB is firmer as well, last at 36.45, +0.40% on closing levels from last week. Headwinds for the ruling coalition are growing with the latest opinion poll suggesting that around 64% of voters hold negative views on acting Prime Minister Prawit's performance in his current capacity.