You Can't Spell FOMC Without F(X)

Most Asia EM FX declines as the greenback gains ahead of the FOMC and equity markets struggle for direction.

• CNH: Offshore yuan is weaker, having struggled for clear direction during the session. Markets await comments from meetings between US and China officials this week as tensions simmer over Australia, Taiwan and Hong Kong.
• SGD: Singapore dollar is weaker. USD/SGD has moved in a tight range this week, oscillating between highs of 1.3484, and lows of 1.3428. Data earlier showed exports rose, but at a slower pace than the previous month.
• TWD: Taiwan dollar has weakened since the open, a rare occurrence that suggest the lack of central bank smoothing. Markets await the CBC rate announcement on Thursday.
• KRW: Won is weaker, data earlier in the session showed South Korea's unemployment fell to 4.0% in February, a sharp drop from 5.4% in January which was a 20-year high.
• MYR: Ringgit has declined, Malaysia declared just 1,063 new Covid-19 infections on Tuesday, which represented the smallest increase in the daily case tally in over three months.
• IDR: Rupiah is weaker, the Indonesian Palm Oil Association declared that palm oil reserves fell to 4.25mn tons in Jan from 4.87mn tons in Dec, while output shrank to 3.76mn tons from 4.04mn tons. Markets await Bank of Indonesia rate decision tomorrow.
• PHP: Peso is weaker, giving up ground for the fourth straight session. Data earlier showed the January budget deficit at PHP 14.1bn, while revenues fell 11.5%, and expenditures rose 1.18%.
• THB: Baht is weaker, USD/THB hitting one-week highs. The Cabinet has approved a THB3.10tn budget for FY2022, with a deficit of THB700bn (i.e. 15% more than in FY2021). The draft budget is subject to revisions and is expected to be submitted to parliament in May.