Yuan Lags Behind

The yuan underperformed after the release of disappointing activity data out of China.

• CNH: USD/CNH extended gains after China's monthly economic activity indicators missed expectations, with consumption growth proving considerably slower than expected. The PBOC earlier set their central USD/CNY mid-point slightly above sell-side estimate and rolled over all of the MLF loans maturing today.
• KRW: The won started on a softer footing after Statistics Korea released monthly jobs data, which showed that while the unemployment rate plunged to a record low, participation shrank and annual employment growth slowed.
• PHP: The peso garnered some strength in the wake of BSP Gov Diokno's comments delivered yesterday. The official said that the peso remains "relatively stable" and noted that policymakers will "move in a pre-emptive fashion" to address price stability risks. As a reminder, Philippine CPI inflation accelerated to the fastest pace since 2018 in August.
• IDR: USD/IDR gave away its initial gains, holding a familiar range in the process, as domestic headline flow lacked notable catalysts. Indonesia's trade surplus surged to $4.740bn in August from $2.589bn recorded in July, defying expectations of a slight narrowing.
• MYR: USD/MYR struggled to make headway beyond its 100-DMA, which has kept a lid on gains this month.
• THB: USD/THB reversed its initial gains after initially approaching the THB33.000 figure for the first time in three weeks.
• SGD: The Singdollar firmer at the margin, ignoring domestic Q2 Labour Market Report, which showed an uptick in the unemployment rate.