September 30, 2024 05:00 GMT
ASIA FX: USD/CNY Steady Ahead Of Onshore Holiday, KRW & TWD Firmer
ASIA FX
North Asia currencies have seen a similar trajectory to Friday's session in some respects. CNH has struggled for further gains, while KRW and TWD have been biased higher against the USD. Equity sentiment has been mixed, with China/HK gains the standout but mostly weaker trends elsewhere.
- The surge in equity gains seen in China/HK, which follows the weekend announcement of easier housing restrictions in 3 large cities (Shanghai, Shenzhen, and Guangzhou) hasn't done much for CNH. USD/CNH couldn't test recent lows near 6.9700 though, with the pair back above 6.9900 in latest dealings. Onshore spot has been very steady, holding above the 7.0100 level, after a close to neutral fixing outcome. The authorities may not want to see further fresh yuan appreciation ahead of the National Day holiday period, with markets out from tomorrow until next Tuesday. The PMI prints were released for Sep and were mostly below expectations, except for the official manufacturing PMI.
- Spot USD/KRW is lower, the pair last near 1307 (+0.30% firmer in won terms). Earlier we got to fresh lows of 1303.4, levels last seen in January of this year. The won has moved higher with AUD, another China proxy play, while some offset has come from weaker onshore equities, with the Kospi down over 1% at this stage. Earlier data showed IP figures rebounding, but this followed a number of months of decline.
- Spot USD/TWD got to fresh lows of 31.57 in early dealings, but sits slightly firmer now, last near 31.63. Like USD/KRW though, the trend in USD/TWD appears skewed to the downside. Local equities have fallen today, off 1.6%.
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