Won Gives Back Some Gains

The won is slightly weaker in early trade, USD/KRW retracing some of the move lower on Friday. The pair last up 1.30 at 1130.65. Bears looks for a break of 1129.90, a 23.6% retracement level before looking to 1120.42, a 38.2% retracement. Bulls look for a break of Feb 25 high at 1136.41, then have the 2021 high of 1145.20 to aim for.

• South Korea reported 482 new daily new coronavirus cases in the past 24 hours, back below 500, a day after reaching a 36-day high of 505, as fewer people took the virus tests due to rain and the weekend amid lingering woes over a rise in new infections. To contain case numbers health authorities extended the current Level 2 social distancing rules in the greater Seoul area for another two weeks until April 11.
• Elsewhere, there are reports that the government and the ruling party has decided to push for new legislation obligating all public officials to declare their assets amid a public uproar over a land speculation scandal involving employees of the state housing developer. The move came as the government and the ruling party are grappling to assuage the public outcry over the allegations that the employees at the Korea Land and Housing Corp bought large plots of land using insider knowledge. A press conference regarding the potential measures is due at 0845GMT/1545KST.
• North Korea has responded to US criticism of its missile launches, calling Biden's comments a provocation and encroachment on the North's right to self-defense and vowing to continuously expand its "most thoroughgoing and overwhelming military power", indicating further tests in future.
• Data highlights this week include business survey on Tuesday, industrial production on Wednesday, trade balance on Thursday and CPI on Friday.