Greenback Gives Ground

The greenback gave back early gains which saw most Asia EM FX move into positive territory for the session despite mostly risk off sentiment.

• CNH: Offshore yuan is in positive territory, reversing losses of around 120 pips earlier in the session. May manufacturing PMI missed estimates at 51.0, which was slower than April's expansion, while non-manufacturing PMI rose to 55.2, the PBOC also fixed USD/CNH 26 pips above sell side estimates, indicating a preference for a weaker yuan after several commentary pieces expressing the same over the weekend.
• SGD: Singapore dollar is flat, bank loans and advances rose 0.4% Y/Y, while foreign currency deposits slipped to SGD 759.7bn.
• TWD: Taiwan dollar gained, USD/TWD hitting the lowest since April 1997, the Taiex was the best performer in regional equity markets with gains of around 1.5% as lawmakers approved a TWD 840bn relief budget.
• KRW: Won is higher, data earlier showed South Korea's industrial output fell 1.6% M/M against estimates of a 0.4% increase. The figure denoted the biggest decline in 11 months as production in the chipmaking industry slumped due largely to a higher base effect. The Y/Y figure did beat estimates due to a low base effect.
• MYR: Ringgit is weaker, the worst performer in the region after reports that Malaysia will move into a full lockdown.
• IDR: Rupiah is flat, there were reports that Indonesia and the US are to have wide ranging discussions with the US on a number of partnerships as well as geopolitical issues.
• PHP: Peso is stronger, BSP Gov Diokno said May inflation is likely to print 4.4% Y/Y with a band of 4.0%-4.8% a reasonable range of estimates, above the central banks 2%-4% target band for the fifth month if this were to transpire.
• THB: Baht is stronger, data showed April manufacturing production rose 18.46% Y/Y, above estimates of 14.9%.