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AUD

Rebounds Despite Headwinds

JGB TECHS

(U1) Fades Off 2021 Highs

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The dollar index faltered in Asia, while broader risk tone remained positive, as light regional headline flow failed to offset the optimistic reception of the U.S. infrastructure deal.

  • CNH: USD/CNH extended yesterday's losses past its 100-DMA, with an in-line PBOC fix providing little in the way of fresh impetus.
  • KRW: The risk-sensitive won outperformed its regional peers, with USD/KRW printing a one-week low. Yesterday's hawkish rhetoric from BoK Gov Lee and continued improvement in business sentiment among South Korean manufacturers provided local tailwinds for the KRW.
  • IDR: The rupiah struggled to follow suit and benefit from better risk sentiment. The difficult Covid-19 situation in Indonesia continued to sap demand for the IDR.
  • MYR: The ringgit firmed a tad. Science Min Khairy said yesterday that the gov't is set to announce a "big economic assistance package," but refused to reveal any details. Malaysian May CPI printed at +4.4% Y/Y, missing consensus forecast of +4.7%.
  • THB: USD/THB retreated after a failure to take out the THB32.00 figure yesterday. Thailand's parliament approved only a limited tweak to the constitution, shrugging off demands of pro-democracy protesters.
  • PHP: The peso gained alongside most Asia EM currencies. Bangko Sentral ng Pilipinas held rates on hold Thursday and marginally upgraded its 2021 CPI forecast.
  • SGD: USD/SGD fell to a new one-week low. Singapore pledged to expand its Covid-19 vaccination campaign from next month, while FinMin Wong anticipated looser rules for inoculated residents.
  • TWD: USD/TWD slipped, but struggled to get past its 50-DMA. Japan said Taiwan's stability is directly linked to its own security and pledged to donate 1mn vaccine doses to the island.