USD/CNY holds 7.0471 as Asia FX splits on Fed outlook, KRW gains

USD/CNY remained steady at 7.0471 following the PBOC's daily reference rate setting, while Asian currencies showed mixed performance amid diverging policy expectations. The South Korean won strengthened as the National Pension Service activated strategic FX hedging measures to curb volatility and support the currency. Nomura analysts highlighted a policy split across Asia as markets price in only two Fed rate cuts for 2026, creating uncertainty for regional currencies. Gold briefly spiked above $2,500 before retreating, reflecting broader risk sentiment shifts. Japan's October BOJ minutes revealed policymaker concerns about persistent inflation and asset price risks, with the Services Producer Price Index rising 2.7% year-over-year. The delayed US semiconductor tariffs on China suggest potential trade truce developments, which could impact regional currency dynamics. Traders should monitor the 7.05 support level for USD/CNY and watch for further intervention signals from Asian central banks.