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ASIA FX: TWD Weakens, China & S Korea Closed Today

ASIA FX
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With both China and South Korea markets closed today, it has been reasonably quiet in North East Asia FX. 

  • USD/CNH has drifted a little higher, in line with weaker yen trends, but overall beta with respect to such moves remains modest. The pair was last near 7.0160 so not too far off where onshore spot finished up for Monday's session (7.0187). China markets are closed today and re-open next Tuesday post the National Day break. Focus is likely to be spending trends during this holiday period, particularly in light of the stimulus initiatives announced in recent weeks.
  • The 1 month USD/KRW has drifted a little higher, the pair last near 1319.5, around 0.20% weaker in won terms. This is a decent rebound from earlier Monday lows close to 1300. Whilst onshore markets are closed today, we still got full month September trade data. Export growth was stronger at 7.5%y/y, versus the 6.4% forecast but still down on the 11.2% August pace. Imports printed weaker than forecast, which drove the trade surplus to just over $6.6bn. This is just off cycle highs.
  • USD/TWD has rebounded strongly. The pair has pushed back towards 31.80/85, around 0.60% weaker in TWD terms. Broader USD gains, amidst higher US yields from Monday will be weighing. We also saw a surge in equity outflows at month end on Monday, with $1.4bn in foreign selling. 
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With both China and South Korea markets closed today, it has been reasonably quiet in North East Asia FX. 

  • USD/CNH has drifted a little higher, in line with weaker yen trends, but overall beta with respect to such moves remains modest. The pair was last near 7.0160 so not too far off where onshore spot finished up for Monday's session (7.0187). China markets are closed today and re-open next Tuesday post the National Day break. Focus is likely to be spending trends during this holiday period, particularly in light of the stimulus initiatives announced in recent weeks.
  • The 1 month USD/KRW has drifted a little higher, the pair last near 1319.5, around 0.20% weaker in won terms. This is a decent rebound from earlier Monday lows close to 1300. Whilst onshore markets are closed today, we still got full month September trade data. Export growth was stronger at 7.5%y/y, versus the 6.4% forecast but still down on the 11.2% August pace. Imports printed weaker than forecast, which drove the trade surplus to just over $6.6bn. This is just off cycle highs.
  • USD/TWD has rebounded strongly. The pair has pushed back towards 31.80/85, around 0.60% weaker in TWD terms. Broader USD gains, amidst higher US yields from Monday will be weighing. We also saw a surge in equity outflows at month end on Monday, with $1.4bn in foreign selling.