Yuan Rises Despite Mfg PMI Miss

The greenback paused its recent rally heading into month- & quarter-end. Risk sentiment was mixed, the won was the worst performer while offshore yuan posted the best returns on the day.

• CNH: Offshore yuan is stronger, data showed manufacturing PMI slipped into contraction for the first time since May 2020, while non-manufacturing unexpectedly rose into expansion, the Caixin manufacturing PMI print also rose.
• SGD: Singapore dollar has strengthened slightly, coming off Wednesday's closing lows.
• TWD: Taiwan dollar is weaker, on track for a third day of declines. CBC Gov Yang spoke on a range of subjects earlier, he noted that the economy may grow 6% this year but said this depends on trade and domestic consumption growth.
• KRW: Won is weaker, but off worst levels seen at the open where it touched a 2021 low. . Data earlier showed industrial output fell 0.7% M/M against a rise of 0.3% expected the print means that industrial output, retail sales and investment declined in August, the first time since May that all the metrics declined together.
• MYR: Ringgit fell, FinMin Aziz said there is room remaining in monetary policy to provide additional support o the economy is needed.
• IDR: Rupiah is weaker, but still on track for a quarterly gain. Looking ahead, Indonesia's monthly CPI and Markit M'fing PMI will be published tomorrow.
• PHP: Peso declined, Philippine unemployment rate jumped to 8.1% in August from 6.9% recorded in July amid tighter Covid-19 restrictions implemented in Metro Manila that month and an expansion in participation
• THB: Baht is lower, the Bank of Thailand voted unanimously to leave their benchmark interest rate on hold Wednesday. This represented a shift from last month's meeting, when two MPC members had voted to trim the policy rate by 25bps.