Weak PMIs Weigh

Asian FX is weaker against the USD, USD/CNH is back above 6.7000.

• CNH: USD/CNH has played catch up with the broader USD trend. The pair is back above 6.7000, unwinding some of the recent outperformance. The weaker than expected Caixin PMI didn't help, remaining well below the 50 expansion/contraction line. China and Hong Kong equities have also struggled, after finishing May quite strongly.
• KRW: Korean markets have been closed for local elections today, but we still had trade figures. Exports were better than expected, which helped lower the trade deficit. The USD/KRW 1 month NDF is back at 1246 from 1243, note the 50 day MA comes in at 1248.
• TWD: USD/TWD spot has rebounded, +0.40% on the day so far, to 29.17. The TAIEX is struggling to make further headway after hitting resistance from the congestion of its 50-DMA/May 5 high/38.2% recovery of the Jan 5 - May 12 sell-off around the 16,760-16,800 area. The PMI also fell in May to 50.0 from 51.7 previously.
• MYR: USD/MYR has pushed higher to 4.3880, in line with the regional trend and softer oil prices. The PMI also fell to 50.1 from 51.6. Yesterday, PM Ismail Sabri told the Nikkei that now is not the right time to call a snap election.
• PHP: Spot USD/PHP has oscillated around the 52.45 level after opening higher. The domestic data docket is virtually empty during the remainder of this week, which turns focus to next week's CPI report. On that note, outgoing BSP Gov Diokno said headline inflation likely settled within +5.0-5.8% Y/Y range in May, accelerating from April's +4.9%.
• THB: USD/THB continued to push higher today, a likely carry over from yesterday's poor current account figures. We are close to 34.38, nearly +0.50% on the day. The deficit was nearly twice as wide as forecast (-$3351mn versus the -$1800mn forecast).