Asia EMFX Trade Mixed Before NFP Release

Currencies from the Asia EM basket traded mixed, with participants bracing themselves for the release of the latest jobs market data out of the U.S. later today. Covid-19 dynamics in different regional localities drew attention, as some Asian nations moved to tighten restrictions.

• CNH: Offshore yuan went bid in spite of the ongoing spread of Covid-19 infections, concentrated in Shaanxi and Henan. Pre-NFP greenback weakness likely helped drag USD/CNH lower.
• KRW: Spot USD/KRW operated in positive territory, as onshore won was wounded by Fed tightening talk. Samsung's earnings missed estimates in Q4, but this was due to the payment of a one-off bonus to employees.
• IDR: The rupiah led gains in Asia, even as Indonesia's daily Covid-19 caseload topped 500 on Thursday. The authorities said in December that they might tighten restrictions if that threshold is met.
• MYR: Spot USD/MYR retreated after Health Min Khairy pledged that the gov't will avoid re-imposing lockdown as much as possible.
• PHP: The Philippine peso struggled for any momentum after the gov't tightened restrictions in a number of areas, while Pres Duterte warned that unvaccinated people who ignore stay-at-home orders may face arrest.
• THB: The baht came under pressure as Thailand's Covid-19 task force debated fresh containment measures, clouding the outlook for the critically important domestic tourism industry.