Won Retraces Even As Exports Soar

The won is weaker in early trade, USD/KRW up 6.20 at 1120.00, retracing the majority of yesterday's gain but still some way off last week's highs above 1126.00. The pair remains between its 100-day moving average (1113.84) and 50-day moving average (1124.295).

A broadly negative day for Asia-Pac equities so far is likely putting pressure on the won, the KOSPI rose over 1% yesterday to hit a record high, buoyed by foreign inflows; the KOSPI is down 1.45% so far today.

• Data earlier showed South Korea's exports soared 81.2% Y/Y in the first 10 days of May as shipments of chips, autos and petroleum goods remained robust amid a global economic recovery. Average daily exports rose 64.7% while imports rose 51.5%.
• South Korea reported 511 new cases of coronavirus in the past 24 hours, back above 500 after a brief dip below. South Korea is also in talks with the US to quickly secure COVID-19 vaccines, South Korea's ambassador to the United States said Monday, adding the United States understands the difficulty South Korea faces. The ambassador also expressed hope that the US will soon expand exports of vaccines by US manufacturers.
• A thin economic docket out of South Korea today, markets look ahead to unemployment data tomorrow which is expected to stick at 3.9% after unexpectedly dropping 1.4ppts at the February print.