USD/PHP Within Sight Of Recent Lows On Oil Pullback/Broader USD Consolidation

USD/PHP has moved lower during today's session. The pair last at 56.57, around 0.20% stronger in PHP terms versus yesterday's closing levels. We aren't too far recent lows, which come in close to 56.50. A break sub this level could see the market target late August lows near 56.10. On the topside, recent highs remain marked close to 57.00. The currency is modestly outperforming the rest of the USD/Asia FX bloc so far today.

• Outside of broader USD softness/consolidation in recent sessions, the sharp pull back in oil prices has likely aided PHP. The Citi terms of trade proxy has firmed back to mid July levels, although we remain in negative territory and sub early June YTD highs.
• Equity sentiment is better today at +0.90%, but we are still tracking lower for the week. Yesterday's upside inflation surprise has raised the risks of a further BSP tightening. Earlier we had August unemployment data, which showed a tick down to 4.4% from 4.8% in July.
• The local calendar has August trade figures out next Wednesday.