Expansion In Philippine Manufacturing Sector Grinds To A Halt

The Philippine peso has been offered this morning, as concern over the spread of Omicron remains, while new data showed that expansion in the local manufacturing sector ground to a halt in January. Onshore Philippine markets re-open after holiday.

• Spot USD/PHP trades +0.197 at PHP51.173 at typing. Bulls set their sights on key resistance layer at PHP51.500, which limited gains earlier this year. Conversely, a dip through Jan 12/5 lows of PHP50.955/50.900 would allow bears to take aim at the 50-DMA, which intersects at PHP50.736.
• USD/PHP 1-month NDF last +0.170 at PHP51.320. Bulls see Jan 18 high of PHP51.950 as their initial target, while bears keep an eye on yesterday's low of PHP50.830.
• The Philippine manufacturing sector neither expanded nor contracted in January, according to the latest Markit PMI survey, with headline index printing right at the breakeven level of 50. Expansion (prev. 51.8) hit a speed bump at the start to the new year, as "the surge in [Covid-19] case numbers and typhoon Odette hit large parts of the nation," as per IHS Markit's commentary.
• Focus moves to monthly CPI data, due this coming Friday. According to BBG survey of analysts, headline inflation is expected to have eased to +3.0% Y/Y in January from +3.6% registered in December.