Hovers Around 200-DMA

After declining through the session yesterday USD/KRW is higher at the open, but still within yesterday's range. The pair last up 2.20 at 1132.40 support is seen at the 200-day moving average of 1131.62, while yesterday's high at 1137.60 is the target for bulls. The peak seen just after the open yesterday was the highest since March 16, 2021 highs are at 1145.20.

• The KOSPI is lower in early trade, there is speculation that the decline in South Korea's auto sales could persist through Q2 due to base effects while the global chip shortage puts the brakes on production lines. Data compiled by Bloomberg showed global funds sold a net KRW 8.9tn of Korean stocks in May, around 80% of which is through short selling after a ban on the strategy was lifted on May 3.
• South Korean President Moon is in the US for a a five-day trip, he will hold summit talks with US President Biden on issues such as North Korea, COVID-19 vaccines and bilateral economic cooperation. Moon will also meet with House Speaker Pelosi and is expected to request congressional support for the Korea peace process and Seoul's bid to emerge as a global vaccine production hub.
• On the coronavirus front South Korea reported 646 daily new coronavirus cases Thursday, above 600 for the second day amid continued cluster inflections and spreading variant cases. South Korea will adjust social distancing rules on Friday, but the current rules are likely to be extended.