ASIA FX: KRW & TWD Rally, CNH Lagging

North Asia currencies are taking their respective cues from major USD trends, particularly yen gains, ahead of the US NFP print later. KRW has firmed as the afternoon session has progressed, while TWD has also rallied strongly. CNH has lagged. Weaker equity trends haven't impacted sentiment so far. 

• USD/CNH sits a touch lower, last near 7.0835. The USD/CNY fixing was back close to neutral, after yesterday's modest downside surprise, which drove fresh CNH gains. So today's outcome has likely tempered CNH sentiment at the margins. This comes despite a 0.35% gain for yen. Local equities are weaker at the margins, while news flow has seen former PBoC Governor Yi Gang stating China needs to fight deflation stress. This comes ahead of August inflation data next Monday. Late August lows for USD/CNH rested at 7.0710, while recent highs were just above 7.1300.
• Spot USD/KRW has played catch up to the downside as the afternoon session unfolds. The pair last near 1327.5, around 0.50% stronger in won terms. Positive spill over from yen gains is a likely positive, while local equity losses and further offshore outflows aren't impacting sentiment at this stage. Recent lows sub 1320 will be eyed on further USD losses.
• Spot USD/TWD is back under 32.00, against recent highs of 32.21. This puts the pair back sub all of its key EMAs. Unlike South Korea, Taiwan equities are firmer, the Taiex up around 1% at this stage.