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ASIA FX: North Asia Currencies Modeslty Weaker Post China 10bps Repo Cut

ASIA FX
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North Asia currencies are mostly weaker against the USD. Negative spill over from softer yen levels is in play, while a 10bps cut to the 14 day repo rate in China has weighed on CNH at the margins. This has offset a positive tone for local equities. 

  • USD/CNH found selling interest above 7.0500, post the 10bps cut to the 14 day repo rate. The pair was last near 7.0470. Whilst the 14 day is not a frequently used tool, it does perhaps signal greater policy easing going forward. PBoC Governor Pan was also on the news wires stating that the central bank will intensify monetary policy adjustments. Note tomorrow morning local time we will hear from the Governor as well as from the CSRC and NRFA on financial support for economic development (per BBG). This will be held at 9am local time tomorrow. China equities are higher today, the CSI 300 up 0.70%. Onshore media also continues to discuss the need for stimulus measures to aid the growth outlook.
  • Spot USD/KRW has drifted a little higher today, but ran out of steam around the 1337.5 level. We were last under 1336. Earlier data showed weaker headline exports for the first 20-days of September, but after adjusting the day count, it still painted a resilient picture for trade. Export growth in terms of chips and to the US remain the positives.
  • Spot USD/TWD is a little higher, but remains under 32.00 at this stage, comfortably off recent highs. The Kospi and Taiex have only posted modest gains today. 
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North Asia currencies are mostly weaker against the USD. Negative spill over from softer yen levels is in play, while a 10bps cut to the 14 day repo rate in China has weighed on CNH at the margins. This has offset a positive tone for local equities. 

  • USD/CNH found selling interest above 7.0500, post the 10bps cut to the 14 day repo rate. The pair was last near 7.0470. Whilst the 14 day is not a frequently used tool, it does perhaps signal greater policy easing going forward. PBoC Governor Pan was also on the news wires stating that the central bank will intensify monetary policy adjustments. Note tomorrow morning local time we will hear from the Governor as well as from the CSRC and NRFA on financial support for economic development (per BBG). This will be held at 9am local time tomorrow. China equities are higher today, the CSI 300 up 0.70%. Onshore media also continues to discuss the need for stimulus measures to aid the growth outlook.
  • Spot USD/KRW has drifted a little higher today, but ran out of steam around the 1337.5 level. We were last under 1336. Earlier data showed weaker headline exports for the first 20-days of September, but after adjusting the day count, it still painted a resilient picture for trade. Export growth in terms of chips and to the US remain the positives.
  • Spot USD/TWD is a little higher, but remains under 32.00 at this stage, comfortably off recent highs. The Kospi and Taiex have only posted modest gains today.