MNI China Daily Summary: Thursday, April 22

MNI BRIEF: China To Quicken Resolving Local Debt Risks

RPT-MNI INTERVIEW: ECB's Wunsch Sees At Least Two Cuts By Dec

MNI BRIEF: Brazil CenBank Faces Greater Uncertainty - Campos

MNI: PBOC Conducts CNY2 Bln Via OMO Mon; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

EZ/UK T-Bill Calendar: 3/6-Month ATB Auction on Tuesday

EZ/UK Bond Supply Calendar: EU, FI Synds; IT, DE Auctions Tues

MNI: CANADA MAR INDUSTRIAL PRICES +0.8% MOM; EX-ENERGY +0.8%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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USD Rally Cools

ASIA FX

Some USD/Asia pairs are off recent highs, but dips have been fairly shallow in the likes of USD/CNH and USD/KRW. PHP weakened to a fresh record low, as onshore markets re-opened today. The Indonesian authorities have also intervened to curb IDR weakness. Tomorrow's focus rests with the BoT decision, a 25bps hike is expected. (see this link for more details).

  • USD/CNH is down from recent highs, but dips remain supported. We saw another stronger CNY fix, but we are well above 7.00 now. Onshore spot USD/CNY caught up as well, closing the wedge with CNH. Both pairs remain just below 7.1650. Industrial profits continued to lose momentum in August (-2.1% y/y YTD).
  • USD/KRW has tried to move lower, but hasn't got much beyond 1425. Lower equities (Kospi off by a further -0.80%), hasn't helped, while a further recovery in consumer sentiment (to 91.4 from 88.8) didn’t shift sentiment. The pair was last close to 1428.
  • USD/TWD has been quiet. The CBC warned it could impose FX controls if outflows get out of hand. The pair was last just above 31.84.
  • USD/IDR sits just under 15160, down from intra-day highs (15171). Comments from a BI official stated the central bank has intervened in the spot and DNFD markets. Indonesia's 5-Year CDS premium stabilises after an impressive surge over the past few days. It last sits at 156bp, operating in the vicinity of Jul 15 cycle high of 166bp.
  • Spot USD/PHP has surged as Philippine markets restarted after a one-day pause caused by a typhoon. Spot USD/PHP last deals +0.450 at 58.99, a fresh all-time high. Head of IMF mission to the Philippines said the BSP has sufficient foreign reserves for an FX intervention, which could alleviate inflationary pressures and relieve some pressure on monetary policy.
  • USD/THB is just shy of the 38.00 level (last 37.967). Equity outflows and yesterday's wider than expected trade deficit have weighed. Tomorrow the focus is on the BoT decision.
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