KRW: 1 Month USD/KRW Close To Mid-August Highs On Equity Weakness
1 month USD/KRW topped out just above 1342 post the Asia close on Thursday, which was close to highs in the pair from mid August. We finished the NY session near 1339, a won loss of 0.59%, as broad equity losses kept the USD supported. The 20-day EMA sits back at 1327.80. Note onshore spot finished at 1339.75 yesterday.
- The local data calendar is empty today, leaving the won on headline watch and driven to some extent by broader equity trends.
- The SOX fell a further 1.76%, while the MSCI IT index lost 1.62% in Thursday trade. To recap, the Kospi fell 1.7% yesterday, while offshore investors sold -$126.5mn of local shares, bringing week to date outflows to -$691.1mn.
- Elsewhere, the authorities will ease the cap on commercial banks bond issuance and keep the liquidity coverage ratio at current levels until early next year according to local new sources (see this link).
- Discussions are also continuing for a trilateral leaders meeting between South Korea, China and Japan before year's end.
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AUD: AUD/JPY: Gains Capped At 20-Day EMA
AUD/JPY saw gains capped at the 20-Day EMA (¥93.97) yesterday, since breaking below the measure in early July the measure has emerged as a key level for bulls. The move off session highs on Tuesday came alongside pressure on US equities.
- In early dealing on Wednesday the pair is little changed from opening levels and sits at ¥93.65/70.
- Bulls first target the 20-Day EMA (¥93.97), a break through here opens the high from 10 Aug (¥94.94) and the high from 26 July (¥95.90).
- On the downside bears look to break the low from 18 Aug (¥92.79) which opens the 200-Day EMA (¥92.56) and the post BOJ low from July (¥91.80).
MNI: UK MAY-JUL MEDIAN PAY AWARDS +5.7% :XpertHR
- MNI: UK MAY-JUL MEDIAN PAY AWARDS +5.7% :XpertHR
NZD: Little Reaction To Q2 Retail Sales Fall
There has been little immediate reaction in the NZD to the fall in Q2 Retail Sales ex Inflation which fell 1.0% Q/Q, a fall of 0.4% Q/Q had been expected.
- NZD/USD prints at $0.5940/45 little changed from opening levels, a low of $0.5938 was seen in the aftermath of the print but the losses were quickly unwound.
- AUD/NZD has marginally firmed and sits a touch above the $1.08 handle however the cross remains well within recent ranges.
