CNH & KRW Rebound

CNH and KRW have rebounded today, which has helped the rest of the region, although THB and IDR have been laggards.

• CNH: USD/CNH is back sub the 6.9000 level. We had another stronger CNY fixing today, relative to market consensus, while official PMI prints came in a touch firmer than expected, although they still suggest economic momentum eased in August. Equities have bucked the broader recovery trend today. Nevertheless, CNH is around +0.40% firmer versus NY closing levels.
• KRW: USD/KRW pushed higher initially but couldn't make much headway above 1350. Domestic data for July was weaker, but didn't impact sentiment a great deal. Onshore equities rebounded from earlier losses, tracking the improved tone in US futures. The Kospi was last at +0.50%. 1 month USD/KRW is back to the 1340 level.
• IDR: IDR has underperformed softer USD sentiment elsewhere. USD/IDR was last at 14848, around +5 figs for the session. Bank Indonesia lowered its GDP outlook for 2023 to +4.5%-5.3% Y/Y from +4.7%-5.5% and warned that inflation may breach the +2.0%-4.0% Y/Y target range. The central bank said it now sees USD/IDR average at IDR14,800-15,200 next year rather than at IDR14,400-14,800.
• THB: The baht is also underperforming. USD/THB was last at 36.40, although we are away from session highs at just under 36.60. Latest comments from Thai officials signalled optimism re: tourism recovery. The government's spokesman said foreign arrivals are expected to be 7.5mn in the second half of the year, generating about THB400bn in revenue. Thai manufacturing production was a little weaker than expected at +6.37%, versus the +8.4% forecast.
• PHP: Spot USD/PHP is slightly lower at 56.145 (-0.08 figs for the session). Factory-gate price growth kept accelerating in July. The latest data from the local statistics authority showed that PPI inflation quickened to +7.9% Y/Y from +7.5% prior. Onshore equities are underperforming, down 1.30% so far today.