Asia EM FX Struggle Despite Mostly Positive Round Of PMI Readings

Most USD/Asia crosses advanced despite a net positive round of Manufacturing PMI readings for regional economies. Greenback purchases seen late doors on Friday likely generated a tailwind for these pairs.

• CNH: Offshore yuan oscillated within a narrow corridor around unchanged levels. China's PMI data were mixed, as a miss in the official m'fing gauge came out before a beat in Caixin counterpart (the latter mostly tracks smaller, private and export-oriented companies). The PBOC fix was marginally softer than anticipated, leaving the redback unfazed.
• KRW: The won took a drubbing as South Korea's trade surplus shrank more than forecast, while the pace of expansion in the local m'fing sector slowed. Spot USD/KRW received a solid boost from strong demand for the USD observed after hours on Friday.
• IDR: The rupiah, another risk-sensitive regional currency, was the second-worst performer in the Asia EM basket. An upbeat local m'fing PMI report failed to alleviate pressure to the IDR, a virtually in-line CPI print was also ignored.
• MYR: USD/MYR blipped higher in early trade, before stabilising comfortably above neutral levels. The Dewan Rakyat begins debate on Budget 2022, which includes some controversial tax proposals.
• THB: USD/THB climbed in Asia-Pac trade, even as Thailand reopened its borders to vaccinated visitors from more than 60 countries.
• SGD: USD/SGD nudged higher alongside most USD/Asia pairs, with little in the way of notable local headline flow transpiring.
  
• PHP: Philippine markets were shut in observance of a local public holiday.