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ASIA FX: North Asia FX Rallies, USD/CNH Back Sub 7.1000

ASIA FX
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North Asia currencies have all rallied firmly against the USD, with lower Trump election odds, weighing on broader USD sentiment and the reflation theme. CNH and KRW spot are both up around 0.60%, while TWD has lagged somewhat, up around 0.40%. 

  • Spot USD/CNH is back to the low 7.0900 region, lows back to mid October. Note on Oct 14th we got close to 7.0710 level, a potential downside target. Election uncertainty has risen, with weekend polls suggesting a very tight race between Trump and Harris, particularly in the swing states. Those seen at risk from greater trade tensions with the US have rallied so far today.
  • The other focus point for China markets will be this week's NPC meeting, which kicks off today and concludes on Nov 8. The market will be looking for fresh impetus around fiscal stimulus measures.
  • Spot USD/KRW is back to 1369/70, up around 0.60% in won terms, and continuing to unwind recent underperformance. Outside of broader USD softness, the rebound in local equities, up +1.4%, as plans to drop capital gains tax for financial investments for retail investors has gained support from the opposition party in South Korea.  
  • Spot USD/TWD is back to 31.84, fresh lows going back to the first part of Oct. 
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North Asia currencies have all rallied firmly against the USD, with lower Trump election odds, weighing on broader USD sentiment and the reflation theme. CNH and KRW spot are both up around 0.60%, while TWD has lagged somewhat, up around 0.40%. 

  • Spot USD/CNH is back to the low 7.0900 region, lows back to mid October. Note on Oct 14th we got close to 7.0710 level, a potential downside target. Election uncertainty has risen, with weekend polls suggesting a very tight race between Trump and Harris, particularly in the swing states. Those seen at risk from greater trade tensions with the US have rallied so far today.
  • The other focus point for China markets will be this week's NPC meeting, which kicks off today and concludes on Nov 8. The market will be looking for fresh impetus around fiscal stimulus measures.
  • Spot USD/KRW is back to 1369/70, up around 0.60% in won terms, and continuing to unwind recent underperformance. Outside of broader USD softness, the rebound in local equities, up +1.4%, as plans to drop capital gains tax for financial investments for retail investors has gained support from the opposition party in South Korea.  
  • Spot USD/TWD is back to 31.84, fresh lows going back to the first part of Oct.