MNI China Daily Summary: Monday, December 9

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AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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ASIA FX: KRW Slumps To Fresh Multi Month Lows

ASIA FX
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North East Asia currency weakness has been led by the won. USD/KRW spot rallied to fresh highs back to July, above the 1390 level. There didn't appear a direct catalyst for this fresh round of won weakness, which took spot USD/KRW back to highs last seen in July. Late June highs were near 1395, while mid April YTD highs were at 1400. Broader USD sentiment was firmer against the likes of AUD and NZD, while most other Asian currencies have struggled today.

  • We heard from the South Korea FinMin earlier, stating they are aware of the FX vol currently in the market. This comes after the earlier comment this week around 1400 bering the new normal. In the cross asset space, South Korean equities are holding higher, while US equity futures sit down a touch. The local market hasn't seen much benefit from the rise in China/HK shares.
  • USD/CNH has risen as well, but only back to a 7.1300 handle. Some offset has likely come from the better local equity tone, with some signs housing data/demand is on the improve. The USD/CNY fixing bias remained close to neutral.
  • Spot USD/TWD is little changed, still holding in the 32.05/10 region at this stage. The better equity/inflow picture relative to South Korea is likely aiding outperfomrance. 
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North East Asia currency weakness has been led by the won. USD/KRW spot rallied to fresh highs back to July, above the 1390 level. There didn't appear a direct catalyst for this fresh round of won weakness, which took spot USD/KRW back to highs last seen in July. Late June highs were near 1395, while mid April YTD highs were at 1400. Broader USD sentiment was firmer against the likes of AUD and NZD, while most other Asian currencies have struggled today.

  • We heard from the South Korea FinMin earlier, stating they are aware of the FX vol currently in the market. This comes after the earlier comment this week around 1400 bering the new normal. In the cross asset space, South Korean equities are holding higher, while US equity futures sit down a touch. The local market hasn't seen much benefit from the rise in China/HK shares.
  • USD/CNH has risen as well, but only back to a 7.1300 handle. Some offset has likely come from the better local equity tone, with some signs housing data/demand is on the improve. The USD/CNY fixing bias remained close to neutral.
  • Spot USD/TWD is little changed, still holding in the 32.05/10 region at this stage. The better equity/inflow picture relative to South Korea is likely aiding outperfomrance.