KRW: Gaps Higher, Extends Gains After NYSE Cancels Delisting Of Chinese Telecoms

A bounce in CNH/KRW resumed today, with the rate punching through its 50-DMA as the yuan remains bid across the board. The redback received a fresh boost after NYSE scrapped plans to delist three Chinese telecom companies. Meanwhile, the won has been reluctant to firm up after USD/KRW failed to make much headway beyond its YtD lows yesterday. As a consequence, the rate trades at KRW168.65, ~0.90 fig. better off on the day.

• From a longer-term perspective, the pair managed to push through the 23.6% recovery of its all-time range at KRW167.75 & the 50-MMA at KRW168.08.
• The rate has approached the 38.2% recovery of the Sep 3 - Dec 7 slide at KRW169.05. A break above this level would shift focus to Dec 23 high of KRW169.78, a key near-term resistance. On the downside, a return under the 50-DMA at KRW168.27 would allow bears to set their sights on Dec 31 low of KRW166.64.