Gains As US Yields Decline

US yields declined which kept USD on the back foot, while positive risk sentiment also helped support Asia EM FX.

• CNH: Offshore yuan gained, USD/CNH dropping after the PBOC set USD/CNY mid-point at 6.4902, 144 pips below yesterday's fix, but 8 pips above sell side estimates. This is the first fix below 6.50 since March 18.
• SGD: Singapore dollar stronger, there were reports that Singapore and Hong Kong have delayed the travel bubble announcement. USD/SGD was unconcerned with the announcement
• TWD: Taiwan dollar strengthened after weakening into the close yesterday. USD/TWD is off session lows, with chatter that with the central bank hamstrung after warnings from the US Tsy the CBC enlisted state-owned lenders to purchase the greenback in order to defend the 28.00 handle
• KRW: Won is stronger, moves somewhat muted as the number of coronavirus cases picks up again.
• MYR: Ringgit is higher. Palm oil futures extended their rally, showing at levels not seen sine 2008.
• IDR: Rupiah is stronger, moves muted compared to peers. With little of note on the local data docket, focus turns to a press briefing with FinMin Indrawati, who will provide an update on 2021 state budget at 0700BST/1400HKT.
• PHP: Peso has gained, concern remains over the pandemic though. The Dept of Health warned that hospitals in five regions are running out of ICU beds. The ICU utilisation rate in Manila is not at 84%. The U.S. asked its citizens to refrain from travelling to the Philippines, owing to "a very high level of COVID-19 in the country."
• THB: Baht is higher, Moody's warned that curbs imposed to constrain the third wave of coronavirus may negatively affect Thailand's economic recovery and fiscal position. Meanwhile PM Prayuth said Wednesday that the gov't wants to increase its vaccine stock by 50% to 100mn doses this year.