USD/PHP Consolidates Under 50-DMA After PMI Data Release

USD/PHP has edged lower, establishing itself under its 50-DMA. The rate last sits at PHP48.06, slightly lower on the day, following the release of the latest Markit M'fing PMI reading and the Finance Dept's update on BoP surplus.

• Philippine M'fing PMI improved to 52.5 in Jan from 49.2, with accompanying commentary noting that "productions volumes rose solidly, while renewed growth in new orders indicated an overall improvement in demand conditions" and "an increase in purchasing activity and stocked inventories was also a positive sign that manufacturing companies expect demand to grow over the coming months."
• Philippine Finance Dept said that the country's BoP surplus was $12.8bn in 2020, the widest since 2010, owing to slower imports and outward payments.
• A recap from Friday: Philippine Trade Sec Lopez suggested that loosening mobility curbs in Q1 is "very much doable."
• Key near-term support is located at PHP48.00, which has limited losses for a few months now. Conversely, a recoil above Jan 28 high of PHP48.15 would bring the 100-DMA at PHP48.28 into play.
• Looking ahead, Philippine CPI data comes out this Friday.