MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI: US NOV CPI 0.3%, CORE 0.3%; CPI Y/Y 2.7%, CORE Y/Y 3.3%

MNI: US NOV SUPERCORE CPI (CORE SERVICES EX-HOUSING) 0.342%

MNI: US NOV CPI UNROUNDED M/M 0.313%, CORE 0.308%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

ASIA FX: SEA FX Losing Ground Amid Strong USD Backdrop

ASIA FX
GlobalEM BulletBulletAPACEmerging Market NewsRegion

South East Asia FX is mostly on the front foot from a USD standpoint, although this largely reflects USD gains post onshore closes from yesterday. Losses haven't extended much beyond 0.30%. Regional equities are mixed, with the strongest gains seen in HK and China markets. SEA equity trends are more mixed.

  • USD/THB appears to be finding some selling interest above 33.50, although remains close to recent highs. Today's highs in the pair were marked near 33.57, just short of Oct 8 highs. The pair was last 33.50/55, still wedged between the 20 and 50-day EMAs. As we noted late yesterday, official push back around FX outperformance appears to be growing with the Finance Ministry stating the FX rate should be 34.5. Consumer confidence numbers fell for Sep, with economic confidence to 48.8 from 50.2. This continues the recent trend move down. It also underscores the need for stimulus to support growth.
  • Spot USD/PHP is up a further 0.30% to 56.15/20. We are off earlier highs though near 57.29. The 1 month NDF tracks near 57.20. Earlier data showed the August trade deficit was very close to forecasts, printed just under $4.4bn. Exports rose 0.3%y/y (against a -7.1% forecast), but imports were also above expectations at +2.74% y/y.
  • USD/IDR is up to 15655, so consolidating the recent move back above 15600. The 1 month NDF is around 0.20% stronger in IDR terms though, last near 15680/85, after ending Wednesday NY trade at 15714. The better regional equity tone is likely helping IDR at the margins.
  • USD/MYR is holding above 4.2900, but hasn't tested above 4.3000 at this stage. Like USD/THB this pair remains wedged between its 20-day EMA on the downside (near 4.2450) and the 50-day on the topside (4.3330). 
286 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

South East Asia FX is mostly on the front foot from a USD standpoint, although this largely reflects USD gains post onshore closes from yesterday. Losses haven't extended much beyond 0.30%. Regional equities are mixed, with the strongest gains seen in HK and China markets. SEA equity trends are more mixed.

  • USD/THB appears to be finding some selling interest above 33.50, although remains close to recent highs. Today's highs in the pair were marked near 33.57, just short of Oct 8 highs. The pair was last 33.50/55, still wedged between the 20 and 50-day EMAs. As we noted late yesterday, official push back around FX outperformance appears to be growing with the Finance Ministry stating the FX rate should be 34.5. Consumer confidence numbers fell for Sep, with economic confidence to 48.8 from 50.2. This continues the recent trend move down. It also underscores the need for stimulus to support growth.
  • Spot USD/PHP is up a further 0.30% to 56.15/20. We are off earlier highs though near 57.29. The 1 month NDF tracks near 57.20. Earlier data showed the August trade deficit was very close to forecasts, printed just under $4.4bn. Exports rose 0.3%y/y (against a -7.1% forecast), but imports were also above expectations at +2.74% y/y.
  • USD/IDR is up to 15655, so consolidating the recent move back above 15600. The 1 month NDF is around 0.20% stronger in IDR terms though, last near 15680/85, after ending Wednesday NY trade at 15714. The better regional equity tone is likely helping IDR at the margins.
  • USD/MYR is holding above 4.2900, but hasn't tested above 4.3000 at this stage. Like USD/THB this pair remains wedged between its 20-day EMA on the downside (near 4.2450) and the 50-day on the topside (4.3330).