USD/Asia Falter On Post-ECB Greenback Weakness, Inflation Data Take Focus

Residual greenback weakness after Thursday's dose of freshly hawkish ECB speak weighed on USD/Asia in early trade, while a number of regional economies reported domestic CPI data for the month of January.

• CNH: Spot USD/CNH held a tight range, with onshore Chinese markets still shut for the Lunar New Year holiday. They will re-open on Monday.
• KRW: The won outperformed in the Asia EM basket, as South Korea's headline consumer price growth printed above median estimate, while the acceleration in underlying inflation was larger than forecast. The data raised the prospect of further tightening action from the BoK going forward.
• IDR: The rupiah held a narrow range, as a potential impact from overnight greenback sales was offset by lingering concern over a spike in Indonesia's daily Covid-19 cases. The 50-DMA and 200-DMA of spot USD/IDR formed a golden cross.
• MYR: The ringgit garnered some strength amid little in the way of domestic catalysts. Local headline flow was dominated by further signs of tensions within the federal coalition, although the frictions between UMNO and Bersatu parties are nothing new.
• PHP: The peso remained stable within this week's range. The Philippines' January CPI inflation printed at +3.0% Y/Y, overshooting the median estimate of +2.8%, with the previous reading revised lower to +3.2%. Note that the data was affected by a base-year shift and adjustments to the CPI basket. BSP Gov Diokno said after the release that the central bank has space to remain accommodative.
• THB: Spot USD/THB extended losses after January data showed that headline inflation accelerated to +3.23% Y/Y (highest level since Apr 2021), beating the consensus forecast of +2.47%. The Commerce Ministry cited oil and fresh food prices as main drivers. Reminder that the BoT are set to hold a monetary policy meeting next week.