Long CNH-TWD 3m NDF:

CNY-TWD is down by 1.3% including positive carry.

The trade has not done well on TWD's gradual one-way appreciation.

It should move higher in reasonable scenarios of Yuan depreciation.

The trade offered attractive carry of around 34bp/month at initiation, but is not attractive at the moment given the collapse in forward points.

Short SGD-INR 1m:

SGD-INR cross is trading close to the top-end of the 2-year range.

SGD NEER has started trading in the upper half of the band although MAS eased SGD NEER appreciation path to neutral last week and Singapore data remains poor.

The INR should outperform on improved sentiment after the rate cut and revised liquidity framework and better monsoon expectations.

The trade carry has positive carry of 42bp/month.

Short MYR/IDR 3m NDF:

In the favourable short term outlook and absent a massive flare up in the risk aversion, the inter-EM positive carry trades should perform well.

Entry point has become attractive after the recent rally, which seems to be stalling.

In Malaysia, political risks are underpriced while sentiment towards Indonesia is solid and bond inflows remain robust.