Outside PHP Bounce, Familiar Ranges Prevail

Outside of a sharp rally in PHP (+0.7%), USD/Asia pairs have respected recent ranges to a large degree during today’s session.

• CNH: USD/CNH couldn't break down through 6.7450 in early trade, despite a firmer lead from onshore equities. Property stocks have bounced strongly since the start of this week, as the authorities look to step up support of the sector. USD/CNH last tracked 6.7575 though, in line with the USD moving off lows this afternoon.
• KRW: USD/KRW attempted another test of 1306, but once again found support at this level. We last traded just above 1309 in terms of the 1 month NDF. Q2 GDP was stronger than expected, with YoY growth holding close to 3%. The Kospi is modestly higher at +0.30%.
• IDR: Spot USD/IDR opened on a softer footing but has trimmed losses since and last deals unchanged at IDR14,998. President Widodo is set to meet with his Chinese counterpart Xi today, for what will be Xi's first face-to-face talks with a foreign leader since the Beijing Winter Olympics. From there, Jokowi will travel on to Japan and South Korea.
• PHP: USD/PHP has fallen sharply today. The dipped got close to 55.60 before support kicked in. We last tracked 55.695. Most analysts assessed the first State of the Nation Address from President Marcos positively, as the leader pledged commitment to "prudent" fiscal management and laid out plans to boost economic growth to an ambitious target of +8% Y/Y. With the new President's maiden SONA seen removing some near-term uncertainties and having pro-growth implications, local equities may now get some reprieve. The local bourse was tracking 0.2% higher for the session.
• THB: USD/THB is higher today, but after an earlier bounce towards 36.75 we are now back at 36.665. The Thai Finance Ministry raised the projection for foreign tourist arrivals this year to 8mn from 6.1mn previously. This should aid THB, all else equal, although a fresh concern for tourism related businesses comes in the way of the outbreak of monkeypox. The government raised surveillance measures over the weekend after confirming the first local case.