1 Month USD/KRW To Fresh Multi0Week Lows On Equity Bounce, Improving Export Trend

1 Month USD/KRW has broken to fresh lows, last tracking near 1337.00, slightly above session lows of 1336.66. We are still now sub the 20-day EMA and back to late September lows.

• Broader base USD softness is aiding the won, while onshore equities have surged at the open. The Kospi is +1.80% higher, aided by a Q3 Samsung profit beat (although lingering chip concerns remain, see this BBG link).
• Samsung tends to a bellwether for offshore investors, so this could be another source of won support if foreign equity inflows recover.
• Elsewhere, the first 10-days of October trade data showed export growth at -1.7% y/y. Note the first 10-days of September exports were -7.9% y/y. Imports were up 8.4% y/y for the first 10-days, resulting in a wider trade deficit (-$5.3bn). Firmer energy prices may be starting to weigh on the import bill, although the deficit does tend to improve as the month progresses.
• Still, further tentative signs of improving export growth are a won positive, all else equal.