EM ASIA CREDIT: Philippine LDTC (TELPM, Baa2/BBB/NR) ratings affirmed.

• China’s PMI Services for January declined to 51.0, from 52.2; likely impacted by the earlier than usual Lunar New Year Holiday.
• This follows Monday’s release of the China PMI Manufacturing at 50.1.
• The overall PMI composite saw a decline to 51.1 for January from 51.4 prior.
• The PMI services result was the lowest reading since September and saw the employment component decline to 48.8 to mark the lowest contribution since April.
• Additionally, the prices charged component saw a decline versus the prior month.
• It is likely that this data release will be of little cause for concern due to the impact of the holidays.  

USD/CNY spot has re-opened higher, the pair last tracking above 7.2800. this fits with the slightly higher USD index levels we've had since the LNY break (onshore markets have been closed since Jan 27). Pre LNY lows in spot were at 7.2376, which also coincided with the simple 100-day MA. 

• USD/CNH has gravitated higher, but is well within recent ranges, the pair last close to 7.2930, slightly weaker in CNH terms for the session. The maintains a modestly positive USD/CNH-USD/CNY basis.
• Earlier we had the USD/CNY fixing which steady relative to pre LNY outcomes. The fixing error widened though, suggesting continued onshore push back against yuan depreciation pressures.
• Data in terms of the Caixin services PMI has also just printed, missing estimates at 51.0 (52.4 was the forecast and 52.2 prior). This continues the Jan run of poorer PMI prints, suggesting some loss of economic momentum, although interpretation is tricky given LNY timing at the end of the month.
• BBG notes home sales resumed falling in Jan, but that box office subscriptions were at t record high.
• Also not helping yuan sentiment will be the lack of equity upside , with onshore markets initially opening higher before turning lower. HK markets are also weaker, as markets digest economic data/trade tariffs etc.  

After rising on Tuesday, AUDUSD has range traded today and is currently down 0.1% to 0.6245, close to the intraday low, after rising to 0.6260. There has been little news so far in the APAC session to give it direction. The USD index is flat.

• Aussie has lost ground against other major currencies though with AUDJPY down 0.6% to 95.94, close to the intraday low. AUDEUR is 0.1% lower at 0.6019 and AUDGBP -0.1% to 0.5006.
• AUDNZD is down 0.1% to 1.1052 after rising to a high of 1.1074 following soft NZ Q4 labour market data.
• Equities are mixed with the ASX up 0.7% and KOSPI +1.2% but CSI 300 down 0.3% and S&P e-mini down 0.3%. Oil prices are moderately higher with WTI at $72.73/bbl. Copper is up 0.2% and iron ore remains around $105.50/t.
• Later the Fed’s Barkin, Goolsbee and Bowman appear and US January ADP employment, December trade and January services PMI/ISM print. Also the ECB’s Lane speaks and January European services/composite PMIs and euro area December PPI data are released.