ASIA FX: CNH & KRW Softer, Firmer Trends In SEA

In North East Asia, FX trends have been softer compared to South East Asia, although we are away from worst levels. Overall losses are also quite modest. 

• USD/CNH threatened to test above 7.1300 in the first part of trade, which marked earlier September highs and also has the 20-day EMA resistance point around this region. Some nervousness in USD/CNH may be creeping in ahead of tomorrow's US Presidential debate, with latest opinion polls suggesting a very close outcome. USD/CNH risk reversals have trended higher in recent weeks. After failing to breach the 7.1300 handle, the pair has drifted lower this afternoon, last near 7.1225. August trade figures showed better than forecast export growth, but imports were below expectations and suggest a soft domestic demand backdrop.
• Spot USD/KRW has mostly traded with a positive bias today. Highs have been capped above 1345 though, which is sub levels we saw intra-session through Monday trade. Onshore equities are weaker, although losses are modest at this stage.
• It's a similar backdrop for USD/TWD, the pair edging higher, last near 32.19. This leaves us close to recent highs around the 32.20 level. Equity jitters in the tech space, which is driving strong equity outflows is a clear headwind. Yesterday's better than expected export growth figures for August haven't shifted sentiment positively.