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1 Month USD/KRW Tests Above Simple 200-day MA


1 month USD/KRW got to fresh highs above 1316 late in Tuesday NY trade. We settled back lower by the close, ending the session near 1311.50, a modest won loss of 0.26%. Note onshore spot finished yesterday at 1311.20.

  • Tuesday highs in the 1 month NDF weren't too far away from the 100-day EMA (1317.7). We also tested above the simple 200-day MA (1314.5). Note on the downside, the 20-day EMA is near 1305.
  • Won saw negative spill over from firmer USD gains elsewhere, particularly higher beta FX. However, the yen outperformed, which was a positive, while tech equities were mixed. The MSCI IT index rose 0.66% in Tuesday trade, while the SOX fell -0.57%.
  • The pull back in core yields post US data misses (real US 10yr back to 2.01% from 2.07%) and dovish ECB speak, likely helped tech equity sentiment, but only at the margins.
  • To recap, the Kospi ended Tuesday's session down 0.82% and back under the 2500 level. Offshore investors still added $102.6mn to local shares though.
  • The local data calendar is empty until tomorrow's Oct BoP current account and goods balance data.

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