Won Weighed By South Korea/North Korea Tensions

USD/Asia pairs have tracked higher for the most part in Friday trade to date. USD/CNH probed above 7.1800, fresh highs back to Dec 13 but it didn't follow through. The won has been weighed down by fresh tensions between South Korea and North Korea. Thailand and Philippines CPIs were weaker than expected. The Taiwan Dec inflation report is due later.

• USD/CNH got a high of 7.1803 as HK and China equities opened up weaker. Sentiment quickly turned around though and we are away from lows for both indices, although positive impetus hasn't been that strong. USD/CNH last tracked near 7.1770.
• 1 month USD/KRW got to fresh highs near 1315 on headlines of shelling from North Korean and South Korea evacuating an island near the boarder with North Korea. There are no reports of casulities though. We sit back slightly lower now, last near 1313. Onshore equities are down 0.55% for the Kospi at this stage.
• USD/THB has continued to track higher, not too far highs for the week near 34.60. CPI was weaker than expected in terms of the headline, which should leave pressure on the BoT to shifts its policy bias in 2024. The baht is the second worst performer (behind KRW), for this past week, losing nearly 1.15%.
• USD/SGD has drawn selling intertest on moves above 1.3300 so far this week, the pair last around 1.3305, little changed versus end Thursday levels in NY. The 20-day EMA which comes in at 1.3293 may be acting as somewhat of a resistance point. A clean break above 1.3300 could see 1.3385/90 targeted, which is where the 50-day EMA comes in. Recent lows rest under 1.3160. Retail sales were close to expectations for Nov.
• USD/PHP has tracked higher, last near 55.75/80, around 0.50% weaker in PHP terms for the session. This may reflect some catch up for earlier outperformance from PHP this week. Dec CPI data was slightly weaker than expected, but it's unlikely to shift the BSP bias in the near term.