KRW & PHP Lead Losses In Asia, China's Inflation Beats Expectations

Higher U.S. Tsy yields buoyed USD/Asia crosses at the start to the week, with Chinese inflation data providing the main point of note on the regional docket.

• CNH: Offshore yuan took a beating even as China's inflation figures topped forecasts. Faster than expected PPI growth was testament to price pressures on manufacturers, whose business operations are disrupted by the worsening outbreak of Covid-19. On that front, Shanghai's daily cases topped 26k despite harsh countermeasures, while Guangzhou announced a slew of new restrictions.
• KRW: Firmer U.S. Tsy yields pushed spot USD/KRW higher, resulting in the formation of a double-bottom pattern. South Korea's FinMin-nominee vowed to draw up an extra budget that could be unveiled in early May.
• IDR: Spot USD/IDR held marginally above neutral levels. Indonesia's retail sales rose 8.6% Y/Y in March, according to central bank estimates.
• MYR: The ringgit went offered, with spot USD/MYR printing its best levels in more than two weeks, as participants awaited the release of Malaysia's industrial output data.
• PHP: Spot USD/PHP surged past the PHP52 mark. BSP Gov Diokno continued to play down the significance of fallout from Russia's invasion of Ukraine for the Philippine economy.
• THB: Spot USD/THB extended recent gains to fresh monthly highs amid limited local headline flow.