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1 Month USD/KRW Breaks Lower Before Rebounding

KRW

1 month USD/KRW made fresh lows earlier dipping sub 1315 (lows back to the first part of August), but we sit back higher in recent dealings, the pair last in the 1319/20 region. The 20-day EMA is nearby, last near 1320.

  • Won gains followed the sharp dip in USD/CNH post moves to boost CNY sentiment (FX reserve requirement cut) and a firmer CNY fixing. However, as these moves have partially reversed, 1 month USD/KRW has climbed.
  • Slightly better than expected export data also aided earlier sentiment. Some offset came from a lower August PMI read.
  • In the equity space sits down off earlier highs, little changed for the session.

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