USD/KRW Edging Closer to 20-Day MA (1407.4)

USD/KRW 1 month dipped as far as 1409 late yesterday, note onshore spot closed at 1410.60. We finished the NY session at 1416, with moves above 1420 finding selling interest. For the 1 month NDF, the 20 day MA comes in at 1407.41 today, which we haven't tested on the downside since mid-August

• The data calendar is quiet, although we did have FX reserves for September print earlier, which showed the steepest 1 month drop since 2008 (see this link for more details).
• There could be some comments from officials following the FX reserves number, although we would expect rhetoric to be along the lines of reserves being adequate etc.
• Tomorrow current account and goods balance data print for August.
• Offshore equity leads were less positive for the Kospi overnight. Tech still managed to outperform though. To recap, the Kospi rose +0.26% yesterday, while offshore investors sold $132.6mn. Offshore sales were around $200mn at one stage though.
• Geopolitical tensions mare also likely to continue, following another round of missile testing by North Korea this morning. Still, such events have not impacted South Korean asset market sentiment a great deal in recent weeks.