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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
TWD
USD/TWD continues to track lower, with spot testing sub 30.00 today. We haven't made a convincing break of this level yet, although the 1 month NDF is already comfortably below this level, last around 29.88. This pair found some support around early Dec lows sub 29.85. Also note this pair is close to forming a death cross forming (50-day MA breaking below the 200-day MA).
- The firmer TWD tone looks to be a little at odds with steady CNH and KRW levels today. However, it looks to be somewhat of a catch up play, see the chart below. The currency has lagged the stronger ADXY tone through January.
- Also note yesterday saw +$2.5bn in net equity inflows. This is the strongest daily inflow since end 2005 and may be aiding currency sentiment still.
- Local equities are down 0.80% today, after yesterday's +3.8% gain.
- Later on, Dec export orders print, the market looks for a -25.0% y/y outcome, -23.4% y/y printed in Nov.
Fig 1: USD/TWD Playing Catch Up With Firmer ADXY (Inverted) Trend
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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