PHILIPPINES: Inflation Going Nowhere in the Philippines

Jul-04 01:39

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* June's inflation release showed little sign of pricing pressures returning to the Philippines. *...

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THAILAND: Thailand Manufacturing Outperformed In May

Jun-04 01:38

Thailand was the only country in Asia to show an increase in manufacturing activity and positive growth in the sector in May. The S&P Global manufacturing PMI rose to 51.2 from 49.5, highest since December, driven by output growing at its fastest in nine months. It signals an improvement in manufacturing growth. Unlike the rest of ASEAN, export orders were higher. The outlook is also positive.

  • Business confidence eased but remained well above the historical average despite heightened global trade and economic uncertainty as producers hope that marketing will improve interest.
  • The increase in domestic and export orders encouraged hiring and inventory building in May but purchasing eased. Total orders grew for the first time since December with exports positive for the first time in over 18 months which may be due to increased marketing and new product efforts.
  • Inflation remained contained with costs low helped by suppliers’ discounting, according to S&P Global, but these were still passed onto customers but selling price inflation remained marginal. 

Thailand manufacturing

Source: MNI - Market News/LSEG/Bloomberg

AUSTRALIA DATA: A$ Dip Post GDP Miss Short Lived, RBA July Easing Odds Firm

Jun-04 01:38

AUD/USD dipped modestly post the GDP miss (Q1 growth at 0.2%q/q versus 0.4% forecast). We got to lows of 0.6454, but quickly rebounded. We were last back in the 0.6470/75 region, slightly up on NY close levels from Tuesday. Broader USD sentiment is softer, the BBDXY down close to 0.20% at this stage. The AUD was lagging this weakness, but has caught up now. the AUD/NZD cross is at 1.0760/65, (post data lows were at 1.0752), which keeps us within recent ranges. 

  •  In the bond space, YM spiked higher but quickly reversed. OIS is a few bps softer (more details to follow). There is a 87% chance of July cut up from 79% pre-data. 
     

AUSTRALIA DATA: Soft Q1 Growth Impacted By Weather Events

Jun-04 01:32

GDP grew 0.2% q/q & 1.5% y/y in Australia in Q1 as extreme weather events in the quarter impacted domestic demand and exports. This is lower than Bloomberg consensus but in line with revisions by the big 4 local banks following Tuesday’s net exports, government and inventory data. See ABS press release here. More details to follow.