Coronavirus Cases Above 500, But Data Decent

The won is flat in early trade, last trade at 1132.70. Bears look for a break of 1129.96, a 23.6% retracement level, below which strong support at 1120.48, a 38.2% retracement. Bulls still need to break the 2021 high at 1145.28 to confirm a bullish impetus.

• Data earlier saw confidence in South Korean manufacturers rise to 91, the highest since 2011. Encouragingly, exporters and domestic focused firms both saw confidence increase and shows optimism around the economic recovery. The subcomponents for expectations, new orders and operation rates all saw improvements. Confidence also increased among non-manufacturing firms, rising to 78 in April from 73 previously. Also released was industrial production data, the February Y/Y figure saw a 0.9% rise, against expectations of a 1.0% increase, down from 7.8% last month.
• Elsewhere, South Korean Trade Minister Yoo held a virtual meeting with Ngozi Okonjo-Iweala, the new head of the WTO late yesterday and is said to have voiced support for free trade amid the new coronavirus pandemic.
• On the coronavirus front South Korea reported 506 daily new coronavirus cases in the past 24 hours, above 400 for a second day on Wednesday as a string of cluster infections continued to emerge at various facilities and workplaces nationwide.
• Looking ahead, markets await the release of the 2020 annual report and Q4 FX intervention data today due at 0200BST/1000KST and 0400BST/1200KST