Won Gives Back Gains & Turns Negative

Mixed performance for Asia FX with local dynamics in play, some currencies gain despite risk off sentiment while others give back early gains.

• CNH: Offshore yuan is essentially unchanged, USD/CNH crept higher as the PBOC set their central USD/CNY mid-point at CNY6.4602, 24 pips above sell-side estimate. Today's fixing represented the biggest positive miss since June 17.
• SGD: Singapore dollar is flat, paring earlier weakness. Data showed she Singapore Q2 jobless rate fell to 2.7% from 2.9% previously, while banks loans rose 3.5% in June compared to a 1.2% rise in May.
• TWD: Taiwan dollar is stronger, on the coronavirus front Taiwan-based Apple Daily has reported that Taipei could announce dining-in at eateries will be allowed as soon as today.
• KRW: won is slightly weaker, giving back earlier gains amid negative risk sentiment and shaking off strong data. South Korea June industrial output rose above estimates at 2.2% M/M compare to consensus 1.5%. Y/Y also beat estimates at 11.9% while the June cyclical leading index rose 0.3 points on the month
• MYR: Ringgit is stronger, Malaysia's King stepped in to reprimand the government for misleading lawmakers over the cancellation of emergency ordinances enacted during amidst the outbreak of Covid-19, throwing the parliamentary sitting into disarray.
• IDR: Rupiah is higher, the government said Indonesian central bank will begin to reduce excess liquidity carefully in 2022 and will use other policy tools to support growth.
• PHP: Peso gained, BSP Gov Diokno reiterated that Bangko Sentral is committed to a flexible FX policy, as a market-driven exchange rate can serve as a buffer against external shocks. The National Capital Region will be placed under Enhanced Community Quarantine (ECQ) from August 6 to 20.
• THB: Baht has weakened, Thailand's manufacturing production rose 17.58%, below estimates of 19.15%