Central Bank Speak, M'fing PMIs Take Focus Amid Holiday-Thinned Liquidity

The condition of the manufacturing sector across Asia improved in September, according to the latest survey results published by IHS Markit. Central bank rhetoric supported THB and PHP, while markets in China and Hong Kong were closed in observance of public holidays.

• CNH: USD/CNH crept higher on the back of broader market impetus, with onshore Chinese markets shut and no PBOC fix.
• KRW: The won went offered and underperformed all of its regional peers, weighed on by a combination of geopolitical angst and Covid-19 worry. The DPRK test-launched a new anti-aircraft missile. Meanwhile, South Korea extended current social distancing measures ahead of two back-to-back long weekends. The decision came after a flare-up in Covid-19 infections observed in the wake of the recent Chuseok holiday.
• PHP: The peso led gains in the Asia EM basket, with spot USD/PHP moving away from the psychological PHP51 barrier, which provided formidable resistance over the last few sessions. BSP Diokno said Thursday that the central bank stands ready to "provide dollar liquidity" if they see legitimate demand or excessive volatility.
• THB: USD/THB reopened on a softer footing and remained in negative territory despite trimming some of its initial losses. A senior BoT official said Thursday that the central bank will monitor the baht's movement after USD/THB printed a fresh four-year low on the last day of its worst month in more than 20 years.
• IDR: The rupiah ignored the release of local CPI figures, which fell more or less in line with expectations.
• MYR: USD/MYR recouped its initial losses but seems poised to finish the week on a softer footing.