Rangey

A mixed session with narrow ranges for most Asia EM FX as the greenback posted some small gains.

• CNH: Offshore yuan is stronger, moving in a narrow range. The PBOC fixed USD/CNY 4 pips below sell side estimates, the first fix indicating a preference for a stronger yuan in four days. US Tsy Sec Yellen held an introductory virtual meeting with the Vice Premier Liu He and said talks were constructive.
• SGD: Singapore dollar is flat, sticking to a narrow range throughout the session, markets look ahead to PMI data later in the session.
• TWD: Taiwan dollar is weaker for the second day, retreating from the strongest levels since March 1997. One-month USD/TWD volatility rose to highest since March.
• KRW: The won is weaker USD/KRW rising from the lowest levels since February. Data earlier in the session showed May CPI rose in line with estimates at 2.6%, above the central banks 2% target which has been acknowledged by policy makers. Vice FinMin Hong said t South Korea would take measures to block excessive inflation expectations.
• MYR: Ringgit is flat, moving in a tight range as markets continue to assess the impact of two week lockdown imposed this week. The pair just below its 50-DMA.
• IDR: Rupiah is slightly stronger, CPI rose above estimates at 0.32% Y/Y while core CPI rose 1.37%, also beating estimates. Manufacturing PMI rose to 55.3 in May from 54.6.
• PHP: Peso is lower, dropping from a four-year high. Late yesterday the House of Representatives approved a PHP 401bn pandemic relief bill and a proposal changing some economic provisions in the Constitution.
• THB: Baht is flat, giving back earlier gains seen after a strong bond auction. Demand was robust due to a dovish central bank and safe haven demand as the latest wave of COVID-19 casts doubts on the economy reopening.