The FX market is likely to strengthen ahead of   FOMC meeting on 16th December, says Barclays. On the other hand, if China allows CNY to depreciate, the regional currencies will be under pressure. USDCNY pair increased to 6.45 after CNY included in SDR currency basket. 

Last week, the ECB declared a deposit rate cut of 10 base points to -0.3% and kept all other rates unchanged. After the less than markets' expectated action by the central bank the USD Asia pairs unable to register upward movement.

"A further slide in the CNY is likely to drag other Asian currencies lower as well", foresees Barclays.