The USD/KRW exchange rate increased to its highest level since November 1st following strong South Korean semiconductor data. The rate reached a peak of 1,352 after the latest South Korean retail sales and industrial production figures were released.

The South Korean economy is reaping the benefits of the ongoing semiconductor boom as the artificial intelligence (AI) sector continues to thrive. Government data indicated that chip production in the country surged by 16% in February, marking the largest increase since 2009. Shipments also saw a significant rise of 59% in February, following a 62.7% increase in the previous month.

South Korea's industrial production rebounded in February, with a 3.1% increase after a 1.5% decline in January. Industrial production rose by 4.8% on a year-over-year basis, slightly below the expected 5.8%. In the services sector, output grew by 0.7%, a turnaround from the 0.2% contraction in the previous month.

Despite these positive economic indicators, there are concerns about the housing sector as delinquency rates are on the rise. The delinquency rate increased to 2.7% in the fourth quarter from a low of 0.4% in 2021. Additionally, house prices continue to decline while sales dropped sharply in December after five consecutive months of growth. Analysts predict that this downward trend may persist, especially since the central bank has maintained rates at 3.5%.

The USD/KRW pair has been on a bullish trend lately, staying above the ascending trendline and moving above the 50-day moving average. The MACD indicator has also crossed the neutral point. A notable development is the formation of an ascending triangle pattern, with the upper side at 1,352. This suggests a highly bullish outlook for the pair, with the next target at 1,380. Confirmation of this bullish trend will occur when it surpasses the key resistance level at 1,352.