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ASIA FX: USD/CNH & USD/KRW Supported On Dips, TWD Outperforms

ASIA FX
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Both USD/CNH and USD/KRW have been supported on dips so far today. TWD has outperformed notably, gaining over 0.40% versus the USD. 

  • USD/CNH sub Friday lows, getting to 7.1081, before some support kicked in. We track near 7.1155 in latest dealings, little changed for the session. the lows in USD/CNH came not long after the equity market open. Sentiment was supported by the larger than expected LPR cuts (1yr and 5yr reduced by 25bps, instead of the 20bps consensus expected). It wasn't a total surprise though, given PBoC Governor Pan on Friday stated that the rates would likely be cut by 20-25bps. China equities are higher at the break (CSI 300 +0.85%), while the CNY fixing was neutral.
  • Spot USD/KRW sits back near 1373 in latest dealings, around a 0.30% loss in won terms. Earlier lows were at 1366.5. We are still short of recent highs 1373.75. Onshore equities are higher, while offshore equity inflows are modestly positive. These moves haven't had a lasting positive impact on sentiment though. Earlier data showed export growth is slowing, with daily average exports only modestly positive for the first 20-days of the month.
  • Spot USD/TWD is down sharply, last near 31.94. this is fresh lows since the earlier in the month. Carry over from strong equity inflows at the tail end of last week (post the TSMC earnings beat) is a positive. Late Sep lows in the pair near 31.56 are still some distance away though. 
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Both USD/CNH and USD/KRW have been supported on dips so far today. TWD has outperformed notably, gaining over 0.40% versus the USD. 

  • USD/CNH sub Friday lows, getting to 7.1081, before some support kicked in. We track near 7.1155 in latest dealings, little changed for the session. the lows in USD/CNH came not long after the equity market open. Sentiment was supported by the larger than expected LPR cuts (1yr and 5yr reduced by 25bps, instead of the 20bps consensus expected). It wasn't a total surprise though, given PBoC Governor Pan on Friday stated that the rates would likely be cut by 20-25bps. China equities are higher at the break (CSI 300 +0.85%), while the CNY fixing was neutral.
  • Spot USD/KRW sits back near 1373 in latest dealings, around a 0.30% loss in won terms. Earlier lows were at 1366.5. We are still short of recent highs 1373.75. Onshore equities are higher, while offshore equity inflows are modestly positive. These moves haven't had a lasting positive impact on sentiment though. Earlier data showed export growth is slowing, with daily average exports only modestly positive for the first 20-days of the month.
  • Spot USD/TWD is down sharply, last near 31.94. this is fresh lows since the earlier in the month. Carry over from strong equity inflows at the tail end of last week (post the TSMC earnings beat) is a positive. Late Sep lows in the pair near 31.56 are still some distance away though.