KRW: Spot USD/KRW Back Testing 1350 Support, Won Outperforms USD Indices
Spot USD/KRW continues to retrace lower in the first part of Wednesday trade, the pair last 1349/50, up a further 0.50% in won terms versus end Tuesday levels. Lows so far today rest at 1348.6. Yesterday the won rose 1.32%, significantly outperforming the slight uptick in the USD BBDXY index. The won is now up 2.6% so far this week. A clean break under 1350 we re-ignite focus on recent cycle lows in the 1334/35 region. Recent highs sit at 1395, while the 20-day EMA resistance point is close to 1368.5. The continued decline in oil futures is likely aiding the won, although this isn't weighing on broader USD sentiment (nor is a steadier UST yield backdrop). * In the equity space, the US SOX index was up another 2.06% overnight, now up for 6 straight sessions, amid resurgent tech/AI optimism. The Kospi is +1.5% higher in early Wednesday dealings, above 7100 and looking to trade to fresh Sep highs. * Offshore investor flows to South Korean stocks were close to flat yesterday, and sit at -$41mn so far this week. The pace of outflows has clearly slowed but is yet to turn definitely positive, despite Kospi/global lead tech equity gains. * The sharp turn lower in the won may reflect export
50% in won terms versus end Tuesday levels. 6. 32%, significantly outperforming the slight uptick in the USD BBDXY index. 6% so far this week.
A clean break under 1350 we re-ignite focus on recent cycle lows in the 1334/35 region. 5. The continued decline in oil futures is likely aiding the won, although this isn't weighing on broader USD sentiment (nor is a steadier UST yield backdrop). 06% overnight, now up for 6 straight sessions, amid resurgent tech/AI optimism.
5% higher in early Wednesday dealings, above 7100 and looking to trade to fresh Sep highs. * Offshore investor flows to South Korean stocks were close to flat yesterday, and sit at -$41mn so far this week. The pace of outflows has clearly slowed but is yet to turn definitely positive, despite Kospi/global lead tech equity gains. * The sharp turn lower in the won may reflect exporters returning to supply USDs as we approached the 1400 level at the start of this week.
Note as well, "Financial markets will be closed Sept. " Hence any such flows may be bought forward ahead of this break. 5). The index sits above the 100-point threshold.
7%. However, this stability masks an active tug-of-war between opposing global and local economic forces. * Coming up later today is Aug retail sales data, but this isn't usually a market mover.