ASIA WIDER & Thailand Worries

	1-Aug	25-Jul
Asia Invt Grades	1.44-1.47%	1.40-1.43%
Korea 5y	0.83-0.87%	0.85-0.89%
China 5yr	1.13-1.18%	1.08-1.12%
Philippines  5yr	1.15-1.21%	1.11-1.20%
Thailand  5yr	1.13-1.20%	1.06-1.16%
Indonesia 5yr	2.07-2.22%	2.04-2.14%
Malaysia 5yr	1.20-1.28%	1.05-1.15%
Vietnam 5yr	2.45-2.65%	2.35-2.55%

Cost of buying protection has increased on the week although calm has returned with small inflows observed into EM local and hard currencies funds. Central banks all on heightened alert with RBI intervention again and talking about their “impossible trinity trilemma” 2 days ago.

Economic numbers not looking hot with the Korean trade balance to put pressure on the won again which will find support in China’s PMI coming out at 50.3 (vs expected 49.8) and a trifle expansionary and will give stock markets some support after last night’s US GDP.

As such, I would not be too hard on the AUD today.

Street Talk

“Thailand imposes Internal Security Act in 3 areas of Bangkok ahead of expected anti-Thaksin rally this weekend, local funds main sellers for 2nd straight day on concerns protests may escalate.”

SET Index has been the worst performer in Asia for the past 3 months.

AUDSGD a buy for a punt ?