Mixed Fortunes

Narrow ranges observed for most Asia EM currencies, returns were mixed despite broad risk off sentiment.

• CNH: Offshore yuan is flat, inflation data released earlier showed that CPI slowed while PPI accelerated. CPI rose 0.8% in August against expectations of a 1.0% rise, PPI rose 9.5% compared to 9.0% expected.
• SGD: Singapore dollar is flat, recoverin early losses and sticking to yesterday's range. There were 349 coronavirus cases in the past 24 hours, the highest in a year.
• TWD: Taiwan dollar is slightly stronger but off best levels. Markets continue to mull a spike in local COVID-19 cases. The government announced it would extend tax cuts for biotech firms by 10 years.
• KRW: Won declined again, lower for a third session and inching closer to 2021 lows. There were 2,049 coronavirus cases in the past 24 hours, above 2,000 for a second day.
• MYR: Ringgit gained, Bank Negara Malaysia are widely expected to leave the Overnight Policy Rate unchanged today.
• IDR: Rupiah declined, Indonesian Financial Services Authority yesterday lowered their 2021 loan growth forecast to +4.0%-4.5% Y/Y and said they would be more optimistic if the vaccination drive accelerates and there are no new coronavirus variants which could exacerbate the outbreak.
• PHP: Peso is stronger, Philippine trade deficit shrank a tad to $3.291bn in July from $3.397bn recorded in June, but was wider than forecast in BBG survey of analysts ($2.950bn). The annual growth in exports was slower than expected, which was coupled with a larger than anticipated annual jump in imports.
• THB: Baht rose, consumer confidence slipped slightly in August printing 39.6 from 40.9, economic confidence slipped to 33.8 from 35.3