KRW In Demand With U.S. CPI In Books, CNH Slips After PBOC Fix

The PBOC fix took focus in Asia as the impulse generated by Wednesday's release of the U.S. CPI data, which showed little deviation from expectations, gradually dissipated.

• CNH: Spot USD/CNH edged higher, snapping a four-day losing streak, as the PBOC set their central USD/CNY mid-point 60 pips above average sell-side estimate. The divergence was widest in a month, which some interpreted as a sign of the PBOC's discomfort with redback appreciation. Note that spot USD/CNH retreated towards CNH6.3600 on Wednesday, after the latest U.S. CPI report delivered a blow to the greenback.
• KRW: Spot USD/KRW trimmed losses after a softer re-open, with post-U.S. CPI dynamics in play. Participants were preparing for the next monetary policy decision from the BoK, due to be announced on Friday.
• IDR: Spot USD/IDR wavered within yesterday's range, with matters surrounding Indonesia's policies on key commodity exports dominating the domestic news flow.
• MYR: Spot USD/MYR recouped some of its initial losses after a failure to penetrate its 200-DMA.
• PHP: Spot USD/PHP moved away from early lows but still operated in negative territory, even as the Philippines raised Covid-19 Alert Level in more areas. Elsewhere, Health Sec Duque said he would recommend keeping the Alert Level in Metro Manila as it is, barring a larger spike in hospitalisations.
• THB: The baht traded on a firmer footing, as Thailand's consumer confidence rose to a 9-month high, bolstered by support measures extended by the government. Elsewhere, PM Prayuth asked ministers to tackle rising consumer good prices, possibly through caps on the prices of certain goods.