Peso Lodges Gains Despite Weakness Of Most Asia EM Currencies

The DXY pushed higher with most USD/Asia crosses rising in tandem, as U.S. Tsy yields advanced ahead of the release of monthly NFP report. Continued concern over China's Omicron outbreak overlapped with the familiar combination of Russia's war on Ukraine and the prospect of hawkish Fed action.

• CNH: Spot USD/CNH inched higher on the back of firmer greenback, ignoring the release of China's Caixin M'fing PMI. The survey showed that the manufacturing sector slipped into contraction last month, echoing insights from official data released earlier this week.
• KRW: The won went offered as U.S. Tsy yields climbed. South Korea's monthly trade balance flipped into a deficit amid higher energy costs, albeit exports ballooned to a record amount. South Korean currency was the worst performer in the Asia EM basket.
• IDR: The rupiah stuck to a narrow range, with eyes on local inflation data. Headline CPI growth accelerated to a two-year high and topped expectations, but it remained within Bank Indonesia's target range.
• MYR: Spot USD/MYR advanced after the results of the latest S&P Global PMI survey showed that Malaysia's manufacturing sector contracted in March.
• PHP: Spot USD/PHP extended losses past its 50-DMA and the peso outperformed its regional peers. Expansion in the local manufacturing sector picked up steam in March, as S&P Global M'fing PMI rose to 53.2 from 52.8. Meanwhile, the authorities kept Metro Manila under Covid-19 Alert Level 1.
• THB: Spot USD/THB crept higher as Thailand reported record daily Covid-19 cases and deaths.