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SILVER TECHS

Bullish Extension

GOLD TECHS

Heading North

WTI TECHS

(M1) Needle Still Points North

BRENT TECHS

(N1) Bullish Conditions Remains Intact

USDCAD TECHS

Extends Lower With Bears In Charge

Close Below 28.00 Still Elusive

TWD

USD/TWD last at 27.994, still below the 28.00 handle intraday but refusing to close below the level amid rumoured CB intervention.

  • Data after the Asia close yesterday showed industrial Production Y/Y at 9.9% vs 6.0% expected. Citi Economics highlighted in their forecast that the earlier December release suggests manufacturing strength has extended beyond typical seasonal year-end demand. Manufacturing resiliency is also observed from the latest PMI (which climbed by another 2.5pt to 59.4) and two consecutive months of above 30% Y/Y export order growth.
  • Money supply data was also released. The M1B gauge rose 16.17% Y/Y in December, the fastest pace since May 2010 driven by net capital inflows and accelerated expansion in bank loans and investments.
  • Meanwhile car executives are seeking government help in a bid to see if the supply of chips, — that do everything from controlling power steering to anti-lock brakes, can be sped up which could help support the Taiex further as electronics drive export strength.
  • Covid concerns continue to weigh in Taiwan, despite the relatively small number of cases. TSMC has announced tighter measures to stop the spread of the virus after a cluster was discovered at Taoyuan General Hospital.
  • Markets now look to the US and the stance of the Biden administration on its relations with Taiwan and China. The US State Dept issued a statement over the weekend which affirmed its stance towards Taiwan and encouraged a dialogue with Beijing.
  • Forwards have risen from a month ago in longer tenors, while the 1-month forward has declined to 27.919 from 27.958.