Unemployment Falls, Covid Cases Surge

South Korean won leads gains in Asia EM space as easing geopolitical worry and reassuring local labour market data have outweighed continued surge in South Korea's Covid-19 infections.

• Spot USD/KRW slipped this morning and last operates -3.40 figs at KRW1,196.55, with bears looking for a fall through the 50-DMA at KRW1,191.54 towards the 100-DMA at KRW1,186.78. Bulls need a clearance of Feb 11 high of KRW1,201.50 before targeting Jan 28 high of KRW1,207.25.
• USD/KRW 1-month NDF last seen at KRW1,197.20, a touch lower on the day. Bears keep an eye on the 50-DMA at KRW1,194.01, with bulls looking to a move through Jan 28 high of KRW1,214.39.
• South Korea's seasonally adjusted unemployment rate slipped to 3.6% in January from 3.8% prior, below the consensus forecast of 3.7%. The economy saw the largest annual gain in new jobs since 2000, when it was recovering from the Asian Financial Crisis.
• South Korea's daily Covid-19 cases surged past 90,000 for the first time since the outbreak of the pandemic, as the Omicron variant continues to fuel a rapid spread of infections.