ANZ's Goh on Emerging Markets Asia FX

The video discusses the rate hiking cycle in Asia, highlighting Malaysia and Australia, and its positive impact on Asian currencies against the US dollar. It emphasizes the strength of domestic economies and the potential benefits of China's reopening. The analysis covers China's economic policies, the bullish outlook on the Yuan, and the impact of tourism on the Thai Baht. The video also addresses the challenges faced by the Korean Won, including recession fears and trade deficits, while noting potential recovery signs in semiconductor exports.

What is one of the main reasons for the rate hikes in Asia?

• Pressure from the US Federal Reserve

• Weak domestic demand

• Devaluation of Asian currencies

• Strong domestic economies and inflation control

Why is the PBOC maintaining accommodative policies?

• To strengthen the US dollar

• To decrease the trade surplus

• To support and ensure the momentum of economic recovery

• To increase interest rates

What factor is encouraging Chinese exporters to keep their proceeds in US dollars?

• Higher onshore dollar deposit rates

• Strong US trade deficit

• Lower US interest rates

• Weak Chinese Yuan

What is contributing to the Thai Baht's strong position?

• Decrease in tourism

• Current account deficit

• Increase in freight costs

• Recovery in tourism and current account surplus

What recent trend could help the Korean Won improve its trade balance?

• Reduction in import bills and rising semiconductor exports

• Weakening semiconductor exports

• Increase in oil prices

• Decrease in foreign investments