USD/PHP Eyeing Downside Support Post Q3 GDP Beat

USD/PHP sits lower, last near 55.92, around 0.20% stronger in PHP terms for the session. Earlier lows were around 55.84, which came just after the open. There appears to be some support ahead of 55.80, which is where the pair bottomed out on Monday.

• Current spot levels are very close to the 200-EMA, we are sub all the other key EMAs (the 100-day sitting back at 56.285).
• The better than expected Q3 GDP data, out a short while ago, has likely helped PHP at the margins. Q/Q growth was +3.3% (+1.8% forecast and -0.7% prior). This drove y/y growth to 5.9%, from 4.3% prior (4.7% expected).
• The detail was fairly solid, private consumption holding up (+5% y/y), while investment was down -1.6% y/y, but construction rose 12.4% y/y. Government officials have stated post the data that the lower end of the 6-7% growth target can still be achieved this year.
• Lower oil should also be aiding PHP sentiment.
• In the equity space, the PCOMP is +0.65% higher in the first part of trade. We are back to mid October levels.