Peso Outperforms On Marginally Looser Restrictions, Narrower BoP Deficit

The Philippine peso led gains in tight Asia-Pac trade on the back of local drivers, with Chinese PMI figures providing the main points of note in broader Asia EM space.

• CNH: USD/CNH popped higher as Chinese official PMI readings missed expectations, generating selling pressure on the redback. The rate retraced the move even before Caixin M'fing PMI proved firmer than forecast. The PBOC set its central USD/CNY mid-point at CNY6.4672, 7 pips above sell-side estimates.
• KRW: The won turned its tail, with USD/KRW moving away from two-month lows printed yesterday. Local industrial output data provided little in the way of immediate market reaction, as a beat in the annual reading was coupled with a miss in the monthly print. Vice FinMin Lee said April CPI, due next week, will likely top the 2% target.
• PHP: The peso easily outperformed all of its regional peers as the Presidential Palace announced that some businesses will be allowed to resume operations with limited capacity, while Thursday's data showed that the Philippine BoP deficit narrowed markedly.
• THB: USD/THB failed to break under Apr 19 low of THB31.173, which would complete the formation of a double top pattern. Local Covid matters took focus, after Thailand backpedalled on its earlier decision to cut the length of mandatory quarantine and imposed fresh restrictions.
• IDR: The rupiah was rangebound, with local news flow revolving around Indonesia's plans to attract more FDI.
• MYR: USD/MYR continued to creep away from a recent cycle low, with pent up market impetus from Thursday (a market holiday in Malaysia) easily digested at the re-open.
• Markets in Taiwan & Vietnam were closed owing to local public holidays.