Asian currencies to look towards the CNY for further cues

The regional pairs may continue to remain adrift, says OCBC Treasury Research.

OCBC Treasury Research noted:

With regards to USD-Asia, the regional pairs may continue to remain adrift, buffeted by global undercurrents although the outperformance by the regional currencies against the EUR may remain more prominent at this juncture.

Elsewhere, Asian currencies are also expected to look towards the CNY for further cues, and any further deepening of slowdown concerns are likely to keep the USD-CNY aloft within its permitted fluctuation band.

Overall, although net capital flows into Asia remain reluctant and we remain inherently positive on Asia, more mileage may be had from selected Asian-crosses instead.