Mixed Performance; TWD & IDR Top Table, THB Lags

The greenback dropped in Asia on Wednesday but risk sentiment was mixed with regional dynamics in play. The rupiah continues to outperform.

• CNH: Offshore yuan is stronger, USD/CNH broke out of yesterday's range as the yuan gained. Chinese equity markets gained today, there was no updated commentary on the regulatory crackdown. Data earlier showed China July Caixin services PMI rose to 54.9 from 50.3.
• SGD: Singapore dollar is stronger, on the coronavirus front new cases fell to 98 on Tuesday, dropping below 100 for the first time in two weeks while Singapore July whole economy PMI rose to 56.7 from 50.1 in June.
• TWD: Taiwan dollar is stronger, on track for a third day of gains. USD/TWD has retreated further underneath the 28.00 handle, the recent decline in coronavirus case numbers has led to a slight relaxation of restrictions in Taipei.
• KRW: Won is stronger, managing to gain after a shaky start. Coronavirus cases jumped but focus has been on a hawkish set of BoK minutes with the August meeting now seen as live by several banks.
• MYR: Ringgit is lower. Political turmoil rumbles on; UMNO Pres Zahid said that 11 UMNO MPs have retracted support for PM Muhyiddin and submitted their declaration to the King, while Energy Minister from UMNO stepped down.
• IDR: Rupiah gained and is on track for a sixth higher finish. Some of the gain is attributed to bond inflows after a strong sukuk auction yesterday. Indonesian Q2 GDP report will be published on Thursday.
• PHP: Peso fell, Bangko Sentral ng Pilipinas released a statement based on Gov Diokno's recent speech, noting that the central bank will maintain its accommodative policy stance for "as long as necessary" amid risks stemming from the spread of the Delta variant.
• THB: Baht is lower, Thailand's Covid-19 case count topped 20,000 for the first time today, while daily deaths reached a new record high of 188 while the Cabinet agreed yesterday to double its Covid-19 relief budget to THB60bn.