Elevated Coronavirus Numbers Continue To Weigh

A cagey session ahead of US NFP data later today; the greenback continues to firm while coronavirus concerns in Asia sapped risk sentiment.

• CNH: Offshore yuan is weaker, USD/CNH rising above 6.48 for the first time since June 24. Sino-US tensions continue to bubble. Thursday saw US Commerce Secretary Raimondo note that the US "will make sure that the Chinese play by the rules, protect IP, allow our markets, our companies to access that market."
• SGD: Singapore dollar is weaker, USD/SGD making its way above the 1.35 handle for the first time since March. On the coronavirus front the health ministry has said Singapore plans to announce a further easing of COVID-19 restrictions in mid-July as part of a strategy for reopening.
• TWD: Taiwan dollar is weaker for a second day, USD/TWD rising towards the 28.00 handle pre-NFP. On the coronavirus front the government is said to be working on guidance for various industries in case of the outbreak re-emerges after restrictions are eased.
• KRW: The won is weaker as new coronavirus cases jump to 826, the highest since January. Elsewhere inflation was above the BoK's target for the third month, but did slow slightly from the May print.
• MYR: Ringgit softened. Malaysia's Defence Min Ismail Sabri announced the implementation of stricter curbs on mobility (EMCO) in most of the Klang Valley. New virus counter-measures in the Klang Valley will take effect from Jul 3 through Jul 16.
• IDR: Rupiah is weaker for the fifth straight day. Indonesia unveiled a slew of new restrictions for Java and Bali, which will take effect for two weeks starting tomorrow (i.e. Jul 3 - 20). All non-essential workers have been told to work from home, while most essential sectors will operate at 50% capacity.
• PHP: Peso lost ground, the Philippines marginally relaxed capacity restrictions in the NCR+ region. Elsewhere, the Dept of Health said that the Philippines is now a low-risk country for Covid-19, as the two-week rate of increase in new cases has been faltering.
• THB: Baht is lower and near a 13-month nadir. PM Prayuth said that Thailand has to accept the risks associated with launching the Phuket sandbox. The national Covid-19 task force warned that if the average number of infections on the island tops 15 per 100,000 people in one week, the project can be delayed or cancelled.