AXJ vulnerability on valuation, policy and hedging flows

Standard Chartered notes... 

• The broad-based revaluation of the USD in the global financial system has left some AXJ currencies losing ground against it but actually still appreciating in tradeweighted (TWI) terms. 
  
  
• Based on market pricing at the Asian close on Friday, seven of the 10 widely traded AXJ currencies had posted net TWI gains since June and December 2014. 
  
  
• Moreover, some of these TWI gains since June 2014 have been substantial, with the CNY, THB, HKD and Philippine peso (PHP) all posting TWI gains of around 10ppts or more. 
  
  
• However, recent, pronounced weakness in the MYR, SGD and IDR against the USD has also been reflected in losses for the currencies on a TWI basis, with the MYR as the outlier. 
  
  
• With USD-MYR at 3.69, the MYR TWI is 1.8% weaker than in December 2014 and 3.7% weaker thanlast June.