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1 Month USD/KRW Tests Downside Support At 100-day MA Before Rebounding

KRW

1 month USD/KRW got to fresh lows around 1297 late in Friday Asia Pac trade, before rebounding to 1305 by the NY close. Broader USD strength amid a yield recovery, aided the move higher in the pair, offsetting further equity strength in the major indices, although tech related plays underperformed broader benchmarks. For onshore spot we closed at 1305.35 on Friday.

  • The low in the 1 month on Friday came close to the 100-day MA, which sits near 1298.50. Won sentiment is likely to be dictated by broader USD trends and equity sentiment in dealings today.
  • Last week saw an impressive $1184.8mn offshore inflows into local equities. The Kospi closed above 2600 on Friday, fresh highs back to June last year.
  • The early USD tone has been firmer though, amid heavy US Treasury Futures and slightly lower US equity futures.
  • We have already had May FX reserves, which fell to $420.98bn from $426.68bn. Otherwise the data calendar is empty until this Friday. Note as well onshore markets will be closed tomorrow for the Memorial Day holiday.
  • FinMin Choo will hold a meeting today on improving service industry outcomes at 2pm local time.

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