October 17, 2024 03:56 GMT
KRW: USD/KRW Spot Eyeing test Above 1370, Amid Multiple Headwinds
KRW
Spot USD/KRW is gravitating higher, the pair in the 1369/70 region, off a further 0.35% in won terms. This is fresh highs back to mid August for the pair, with the 1370/80 region likely to be the upside focus point. The RSI (14) is edging higher but not yet in overbought territory.
- The softer tone to China/HK equities following some disappointment around the Housing market press briefing is likely weighing at the margins (USD/CNH is back to unchanged for the session).
- Onshore South Korean equities are around flat, but we continue to see sales from offshore investors, with a further -$253.9mn in fresh outflows so far today.
- Concerns around a softer export outlook may be another headwind, with key markets in Asia showing a softening trend through September.
- The final factor is likely to be US election proximity, with the polls very close, a Trump victory will likely weigh on trade sensitive currencies in EM Asia.
156 words