KRW: Spot Above 1340, Technicals Turning Less Won Positive, BoK Mins Later

Spot USD/KRW ended extended Monday trade at 1342, a won loss of 0.52%. The pair got as high as 1347.85 late in Monday Asia Pac trade, which was above the simple 200-day MA (albeit briefly). The 20-day EMA resistance point was also breached, but we closed sub this level (1343.44). The 1 month NDF finished up near 1339, also off intra-session highs (above 1345). 

• Won spot losses were slightly larger than broader USD index gains (DXY up nearly 0.40%), but was close to yen losses for Monday's session. Broader USD sentiment has stabilized in the aftermath of the payrolls print, with the next data litmus test Wednesday's CPI outcome.
• For spot USD/KRW the technical picture looks biased towards higher levels in the pair, see the chart below, with a series of higher lows/higher highs since late August.
• The equity backdrop was more positive Monday in US markets (EU markets also finished higher). In the tech space, the SOX rose  over 2% but is only modestly above recent lows. The MSCI IT index was up 1.28%, the indices first gain since Monday last week. To recap, the Kospi finished up from lows on Monday but still down 0.33% for the session. Offshore investors remain biased to sell tech sensitive markets, with -$337.7mn in fresh outflows for Monday.
• Today the data calendar is empty but towards the end of the session the BoK minutes from the August policy meeting with print. Household debt will also be a topic of discussion between the FSS Governor and 18 banks (per BBG). 

Fig 1: USD/KRW Spot Trends