MNI China Daily Summary: Friday, April 26

MNI BRIEF: China, US Should Strengthen Dialogue, Cooperation

MNI BRIEF: SNB Framework Reform 'Playing With Fire' - Steiner

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.1056 Fri; -4.56% Y/Y

MNI: BAKER HUGHES US RIG COUNT 613; OIL RIGS 506; GAS RIGS 105

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL APR INDEX 77.2

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Most USD/Asia Pairs Higher, THB Softness Continues

ASIA FX
BulletEM BulletEmerging Market NewsHomepage

USD/Asia pairs are mostly higher in the first part of Wednesday trade. USD/CNH has firmed back above 7.1900, amid onshore equity jitters. Modest USD gains have also been evident elsewhere, amid a mixed equity backdrop, along with carry over from a firmer USD in Tuesday trade post the CPI print. In terms of tomorrow's data events the calendar is quite light. We are still waiting for China new loans, aggregate finance data for Feb, while India trade figures are also due Thur/Fri this week.

  • USD/CNH has firmed back above 7.1900. The pair got to highs 7.1960, but we sit lower now. Onshore equities have struggled, although losses are modest at this stage. Reports of troubled property developer Country Garden missing a yuan bond payment has weighed in the space. A steady yen trend, along with a slightly less aggressive CNY fixing bias have also likely curbed CNH sentiment.
  • 1 month USD/KRW has drifted higher, last near 1312. This is around 0.20% weaker in won terms. Local equities are higher but away from best levels. Earlier we had data on the unemployment rate, which fell to 2.6% (against a 3.0% forecast). This suggests the domestic labor market backdrop remains resilient. For the 1 month NDF, 1305,, which has marked recent lows remains intact.
  • USD/THB gaped higher at the open, the pair got to highs of 35.76, but we sit slightly lower now, last near 35.68. This is still a baht loss of 0.30%. Some of this reflects catch up with USD strength post yesterday's onshore spot close, but still baht losses are larger than those seen elsewhere in the region. Local equities remain largely in a sideways range, while portfolio flows have been negative for both equities and bonds in terms of offshore investors in recent sessions. There are also reports that PM Srettha could vacate the finance ministers post due to his busy travel schedule (see this link for more details).
  • Indonesian markets have returned but spot USD/IDR is holding close to recent lows, last near 15575. This is seeing some modest rupiah outperformance relative to the recent rebound in US yields. In February, Indonesia's consumer confidence index declined from the previous month's five-month high of 125.0 to 123.1 in Feb. The index for current economic conditions fell to 110.9, this decrease was driven by reduced confidence in current income, job availability, and durable goods purchases.
396 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

USD/Asia pairs are mostly higher in the first part of Wednesday trade. USD/CNH has firmed back above 7.1900, amid onshore equity jitters. Modest USD gains have also been evident elsewhere, amid a mixed equity backdrop, along with carry over from a firmer USD in Tuesday trade post the CPI print. In terms of tomorrow's data events the calendar is quite light. We are still waiting for China new loans, aggregate finance data for Feb, while India trade figures are also due Thur/Fri this week.

  • USD/CNH has firmed back above 7.1900. The pair got to highs 7.1960, but we sit lower now. Onshore equities have struggled, although losses are modest at this stage. Reports of troubled property developer Country Garden missing a yuan bond payment has weighed in the space. A steady yen trend, along with a slightly less aggressive CNY fixing bias have also likely curbed CNH sentiment.
  • 1 month USD/KRW has drifted higher, last near 1312. This is around 0.20% weaker in won terms. Local equities are higher but away from best levels. Earlier we had data on the unemployment rate, which fell to 2.6% (against a 3.0% forecast). This suggests the domestic labor market backdrop remains resilient. For the 1 month NDF, 1305,, which has marked recent lows remains intact.
  • USD/THB gaped higher at the open, the pair got to highs of 35.76, but we sit slightly lower now, last near 35.68. This is still a baht loss of 0.30%. Some of this reflects catch up with USD strength post yesterday's onshore spot close, but still baht losses are larger than those seen elsewhere in the region. Local equities remain largely in a sideways range, while portfolio flows have been negative for both equities and bonds in terms of offshore investors in recent sessions. There are also reports that PM Srettha could vacate the finance ministers post due to his busy travel schedule (see this link for more details).
  • Indonesian markets have returned but spot USD/IDR is holding close to recent lows, last near 15575. This is seeing some modest rupiah outperformance relative to the recent rebound in US yields. In February, Indonesia's consumer confidence index declined from the previous month's five-month high of 125.0 to 123.1 in Feb. The index for current economic conditions fell to 110.9, this decrease was driven by reduced confidence in current income, job availability, and durable goods purchases.