Free Trial
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.
TWD
Spot USD/TWD is backing away from recent highs, last around 30.74, around 0.25% firmer in TWD terms for the session so far. We are back below the simple 200-day MA, which comes in at 30.78, but this doesn't look to be a major inflection point at this stage. The 50 and 100-day MAs sit lower (30.61 and 30.52 respectively). Recent highs have been between 30.80/85.
- Better local equity trends are aiding the TWD, particularly relative to the softer China currency trend. The chart below plots USD/TWD against local equities, which are inverted on the chart.
- The TWSE has broken above the 16000 level today, fresh highs back to June last year. There still remains a wedge between these strong levels and USD/TWD, although CNY weakness, coupled with a yield differential still in favor of the USD will be providing an offset.
- Yesterday saw $625.6mn in net equity inflows, the highest daily inflow since late March. This came after Tuesday's $292.4mn in inflows, although for the past month we have still seen ~3bn in net outflows.
- Optimism around greater tech integration/investment with Japan (see this link) is spurring gains, while potential Apple demand was the other positive, which we highlighted late yesterday (see this link).
Fig 1: USD/TWD Versus Local Equities (Inverted)
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok