USD/Asia Pairs Mixed, USD/CNH Dips Supported Post Weaker PMIs

USD/Asia pairs are mixed as we approach month end. The weaker China PMIs didn't impact sentiment much, although USD/CNH dips have been supported. Regional equities are mostly higher, albeit away from best levels for the session. Tomorrow, South Korea full month trade figures for May print. Next week we more China PMI data on Monday, then trade figures later in the week. The RBI decision is due next Friday as well.

• USD/CNH got close to Thursday lows (just under 7.2480) in early trade, but we sit back above 7.2550 now. The 20-day EMA is near recent lows. Spot USD/CNY has also crept higher, back above 7.2400. China PMIs showed manufacturing moving back into contraction territory, a fresh worry from a growth standpoint. Local equities are marginally higher though.
• 1 month USD/KRW got to fresh highs near 1383, levels last seen on the first day of May. We have pared gains back to 1380, but this is still 0.4% weaker in won terms, continuing a recent run of underperformance. Regional equity sentiment is better today, although the Kospi is only recovering part of its recent losses. Offshore investors have sold nearly $1.3bn of local equities this week. earlier IP data for April was stronger than forecast but didn't impact sentiment. The BoK and National Pension fund are reportedly in discussions to expand their FX swap program (per RTRS).
• USD/PHP spot sits off recent last under 58.50. Recent highs rest at 58.75. PHP is comfortably the worst performer in EM Asia FX for the month of May (with the dovish BSP a factor). BSP stated earlier that the May inflation print (due next week) is likely 3.7 to 4.5%. They added that the weaker PHP is a key source of pressure.
• Spot USD/IDR is holding just below recent highs, last near 16245 as month end approaches. Local equity weakness continues, with the JCI off a further 0.6% and sub the 7000 level.
• USD/THB is also away from recent highs, last near 36.75, but dips have been supported.