USD/KRW Slips After Re-Open

Continued greenback sales helped push spot USD/KRW lower at the re-open of onshore trade. The rate has moved away from a 1.5-week high and last trades -3.20 fig. at KRW1,170.30.

• We've seen some South Korean data this morning. The BoK's Business Survey showed that manufacturers confidence remained unch. at 68 vs. the previous month, while confidence gauge for non-manufacturers dropped to 62 from 69. Elsewhere, industrial output fell 0.7% M/M in Aug vs. exp. of grinding to a halt after expansion in Jul. It also shrank in line with exp. on a Y/Y basis.
• Seoul Economic Daily cited BoK & FinMin officials as noting that South Korea and China are in talks to extend their $56bn swap deal for three years, with the formal announcement coming up next month.
• Bears need a fall through Sep 21 low of KRW1,157.15 to reinstate downside momentum and bring YtD low of KRW1,150.65 into view. Bulls look for a break above yesterday's peak at KRW1,174.80 before targeting the 50-DMA at KRW1,184.42.
• South Korean trade data will be published on Thursday. As a reminder, South Korea begins its elongated weekend tomorrow.