Export Orders Set To Rise For Sixteenth Month

Taiwan dollar is weaker, USD/TWD up 0.020 at 27.855 pressure by a stronger greenback. The pair is still below yesterday's opening levels of 27.88.

• Markets look ahead to BOP current account data today, export orders are expected to have risen 21.2% in July, down from a 31.1% rise in June, this would be the sixteenth month of expansion. Last month the government said the outlook for export orders related to tech goods remains strong on demand for high-end chips and ahead of the year-end holiday shopping season. Taiwan's exports rose for a thirteenth straight month in July setting a new record, as manufacturers accelerated production to meet a global shortage of computer chips.
• Citi lays out the bullish case for TWD: "22dma of foreign investor net equity flow turned slightly positive, as daily foreign investor net equity flows has shown some signs of stability. With Covid infections coming off, focus will begin to shift to recovery of impacted sectors. While geopolitical developments will continue warrant close watch, the recent developments are turning more favorable to TWD. This may drive near term TWD rebound especially given bearish built up of positioning."