Beijing Holds Talks With DC, PBOC's Yi Expects Sub-2% CPI This Year

Most Asia EM currencies posted marginal gains vs the greenback, while respecting relatively tight ranges. Sino-U.S. trade matters and PBOC speak took focus.

• CNH: Offshore yuan firmed as newswire headlines flagged that China's Commerce Min Wang has held a phone conversation with his U.S. counterpart, during which off'ls agreed to develop bilateral trade and investment relations. Separately, PBOC Gov Yi noted that that consumer-price inflation is expected to average below 2% in 2021, i.e. below the central bank's target. Spot USD/CNH shed ~70 pips, printing worst levels in a week.
• KRW: The won hugged a tight range. The BOK released their quarterly monetary policy report, noting that inflation may accelerate faster than expected and warning against financial imbalances.
• IDR: The rupiah was broadly higher, despite little of note in the way of local news flow. Spot USD/IDR fell to its lowest point since May 17.
• MYR: The ringgit was steady, as the local Covid-19 situation remained front and centre.
• PHP: The peso was stable after the BSP reported that FDI net inflow into the Philippines rose 139.5% Y/Y in March.
• THB: The baht was marginally firmer, even as Thailand's consumer sentiment dropped to the worst since the University of the Thai Chamber of Commerce's survey began in 1998.
• SGD: USD/SGD hovered around unchanged levels, with local news flow offering nothing of much note.
• TWD: USD/TWD slipped alongside most USD/Asia crosses. The WSJ reported that U.S. & Taiwanese trade reps will get in touch this week to restart trade and investment talks.