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ASIA FX: USD/CNH Breaks Above 50-day EMA Resistance

ASIA FX
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USD/CNH has had a strong start to this week, up over 0.75% at this stage. This puts the pair back above its 50-day EMA resistance (near 7.1060), which we haven't been above since July this year. We are also above the simple 50-day MA as well. The pair was last near 7.1250, just off session highs. 

  • CNH weakness looks to reflect uncertainty around domestic fiscal stimulus, while BBG also notes that local banks may further cut deposit rates this week. Onshore media/analysts continue to weigh in on potential stimulus sizes and options. For USD/CNH Sep 11 highs at 7.1367 aren't too far away. The 100-day EMA is near 7.1500.
  • Spot USD/KRW has mostly tracked higher with USD/CNH. The pair last near 1363, off nearly 0.40%. This is fresh highs back to mid August for the pair. Earlier August highs around 1380 may now in play. Earlier data showed trade prices softening for Sep, likely helping onshore price pressures. Onshore equities are slightly higher, the Kospi +0.20% following a positive US lead. Headlines that the US may curb offshore Nvidia sales may have dented sentiment at the margin. 
    USD/TWD spot is little changed, the pair last near 32.18. Onshore equities continue to recover, up a further 1.40% amid positive global tech trends. Military exercises from China continue around the island. 
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USD/CNH has had a strong start to this week, up over 0.75% at this stage. This puts the pair back above its 50-day EMA resistance (near 7.1060), which we haven't been above since July this year. We are also above the simple 50-day MA as well. The pair was last near 7.1250, just off session highs. 

  • CNH weakness looks to reflect uncertainty around domestic fiscal stimulus, while BBG also notes that local banks may further cut deposit rates this week. Onshore media/analysts continue to weigh in on potential stimulus sizes and options. For USD/CNH Sep 11 highs at 7.1367 aren't too far away. The 100-day EMA is near 7.1500.
  • Spot USD/KRW has mostly tracked higher with USD/CNH. The pair last near 1363, off nearly 0.40%. This is fresh highs back to mid August for the pair. Earlier August highs around 1380 may now in play. Earlier data showed trade prices softening for Sep, likely helping onshore price pressures. Onshore equities are slightly higher, the Kospi +0.20% following a positive US lead. Headlines that the US may curb offshore Nvidia sales may have dented sentiment at the margin. 
    USD/TWD spot is little changed, the pair last near 32.18. Onshore equities continue to recover, up a further 1.40% amid positive global tech trends. Military exercises from China continue around the island.