1 Month Back Sub 1330 On Tech Equity Gains, US Urges Allies To Limit Chip Tech To China

1 month USD/KRW benefited from the broad USD pull back post the Asia close on Wednesday. We ended the NY session near 1328.6. Downside momentum in US trade didn't reach the 50-day EMA, which is just above 1326. The 20-day is near 1330.3 on the topside, but hasn't been an important pivot point for markets in recent weeks. Earlier Wednesday highs in the 1 month were around 1335.30/40. Onshore spot closed yesterday at 1334.35.

• The pull back in US yields, coupled with yen gains, aided won sentiment through Wednesday US trade. US data outcomes were slightly weaker than expected, while Powell's testimony was viewed as less hawkish than feared.
• In the equity space, we saw outperformance from the SOX (+2.4%), while the MSCI IT rallied 1%. The US real 10yr yield sits back at 1.81%, against Feb highs just above 2%.
• To recap the Kospi lost 0.30% yesterday, while offshore investors sold -$284.9mn of locla shares.
• The local data calendar is empty today (with goods balance/current account figures tomorrow). The Finance Minister will meet with the heads of local banks.
• Note that headlines crossed in the US session that the US is urging allies, including South Korea, to tighten restrictions on chip exports to China (see this BBG link).