Yuan Finds Poise, Baht Declines In Defiance Of Regional Trend

Most USD/Asia crosses traded on the back foot, as the region digested Chinese inflation data ahead of the release of a corresponding report out of the U.S.

• CNH: Spot USD/CNH climbed to CNH6.7618 before above-forecast inflation data knocked it on its head. The rate pulled back into negative territory as both CPI and PPI grew faster than expected. The yuan drew additional support from daily Shanghai Covid-19 numbers, as the city declared no new community infections. Three consecutive days of no community transmission would allow the authorities to relax restrictions in the city.
• KRW: Wednesday brought a fresh cycle high for spot USD/KRW but the rate failed to punch through the KRW1,280 mark and erased gains. South Korea's exports grew 28.7% Y/Y in the first 10 days of the month, but daily shipments rose just 8.9%. Elsewhere, South Korea's unemployment rate stayed at 2.7%, printing below the median estimate of 2.8%.
• IDR: The rupiah started on a firmer footing before trimming gains. Bank Indonesia's consumer confidence jumped to 113.1 in April from a six-month low of 111.0 recorded in March.
• MYR: Spot USD/MYR operated in close proximity to recent cycle highs ahead of today's monetary policy decision from Bank Negara Malaysia. Most analysts expect the central bank to keep the Overnight Policy Rate unchanged, but 5 out of 19 of those surveyed by Bloomberg call for a 25bp hike.
• PHP: Spot USD/PHP extended its move away from key resistance at PHP52.500 amid ongoing debate about the policy priorities of the Philippines' next President.
• THB: The baht lodged fresh cycle lows and underperformed all of its peers from the Asia EM basket. The government is debating an extension to the excise-tax reduction on diesel fuel, which is due to expire on May 20.