Week Ends With A Bout Of Risk Aversion

Risk off flows on renewed coronavirus concerns dominated the session as euphoria around Biden's inauguration as US President faded.

• USD/CNH up 69 pips at 6.4720 despite a lower fix as USD finds a bid. The fix was once again above sell-side estimates, indicating the PBOC asymmetric response function.
• USD/SGD up 14 pips at 1.3241. Despite the pullback SGD is on track for a weekly gain, the first increase in three weeks.
• USD/TWD last at 27.96, matching session lows yesterday, participants eye upcoming employment data with an eye to close below 28.00.
• USD/HKD up 2 pips at 7.7519. Equity markets in Hong Kong took a beating today after reports of a lockdown in Kowloon as the Covid-19 situation deteriorates.
• USD/KRW up 4.35 at 1102.50, the won snapping a 3-day winning streak.
• USD/IDR has crept higher and last trades up 45 pips at 14,045, chewing into yesterday's losses. Participants digested comments from BI Gov Warjiyo, who signalled potential for further policy easing, as well as a record daily tally of deaths from Covid-19.
• USD/PHP up 25 pips at 48.065. The rate is poised to finish the week on a slightly firmer footing, albeit it remains trapped within a familiar range just above the 48.00 mark.
• USD/THB 43 pips at 29.965, data showed exports rose above estimates, while the trade surplus also beat forecasts. The Commerce Ministry said THB was a risk factor this year, and said it could strengthen or stabilize.
• USD/MYR up 83 pips at 4.0365. CPI fell 1.4%, slightly worse than estimates for -1.3%. FinMin Zafrul noted that Malaysia is on the right path to economic recovery, as monetary, fiscal and epidemiological measures working together to support national economy.