Mostly Weaker; China Data Eyed

Another quiet session ahead of the FOMC rate announcement later today, while impending China data also kept activity subdued.

• CNH: Offshore yuan strengthened slightly. Markets focused on a whole host of Chinese data later in the session; retail sales, industrial production, asset investment and the jobless rate. Consensus is for the pace of increase so slow for most data points on fading base effects.
• SGD: Singapore dollar is flat having barely budged through the session. Markets look ahead to export data tomorrow which is expected to show another month of gains. An MAS survey released yesterday predicted the economy would grow 6.5% with gains expected to be driven by exports.
• TWD: Taiwan dollar strengthened. Markets await the CBC rate announcement tomorrow, the bank are expected to keep rates on hold at a record low but be positive on the recovery and upgrade growth forecasts.
• KRW: The won is weaker, but has come off worst levels and resisted Tuesday's USD strength. The market is focusing on yesterday's BoK minutes which were more hawkish than expected and has seen analysts bring forward rate hike estimates.
• MYR: Ringgit is weaker, PM Muhyiddin unveiled Malaysia's reopening plan in a special televised address on Tuesday, pointing at end-Oct as the earliest possible date when restrictions could be fully lifted and life could return to normalcy.
• IDR: Rupiah declined, Indonesian Econ Min Hartarto said that national economy is expected to rebound this year and the gov't remains confident that the GDP growth target of +4.5%-5.3% will be met. Hartarto added that the gov't has used 31.4% (or IDR219.65tn) of its 2021 pandemic stimulus budget.
• PHP: Peso is lower, data late yesterday showed overseas remittances rose 12.7% Y/Y to +$2.305bn in April, missing expectations of a 19.3% annual growth. Elsewhere the IMF said GDP could frow 5.4% this year and 7% in 2022.
• THB: Baht dropped, PM Prayuth said Tuesday that relevant state agencies, including the Bank of Thailand, have been ordered to put more effort into finding ways to address the rising household debt burden.