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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.
TAIWAN
TWD FX is lagging the broader USD sell-off today. Spot USD/TWD is down from earlier highs above 32.30, last around 32.25, but this is still up on yesterday's closing levels. The 1 month USD/TWD NDF is -0.15% on NY closing levels, last at 32.21, but this is being shaded by moves elsewhere. Notably, USD/KRW 1 month is down 0.53% (sub 1420).
- Earlier, the Taiwan October PMI slipped to 41.5 from 42.2 prior. This is well below the next lowest in the region, South Korea (48.2). The detail of the Taiwan PMI print was weaker as well, output down to 34.5, from 37.4, while new orders are back to early 2020 lows.
- Taiwan's greater exposure to the tech sector, coupled with weaker demand from China, is likely weighing on domestic manufacturing sentiment.
- This is impacting net equity flows as well. October saw just over $3bn outflows from offshore investors, although the trend was better towards the end of the month. In contrast, South Korea saw +$2.1bn in net inflows for last month.
- The TWD NEER is just off YTD lows (last at 120.56 per the J.P. Morgan Index).
Fig 1: Taiwan PMI At Depressed Levels
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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