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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 has recovered some ground today, rising 0.20% so far to put the pair back near 32.18. This nearly reverses all of yesterday's TWD gains. It also puts us back above the 20-day EMA (~32.15).
- It comes despite a beat from September exports late yesterday, +3.4% y/y (versus -2.5% forecast and -7.3% prior). This is the strongest result since Q3 last year and points to an improving external backdrop.
- Less of a drag from semiconductors and strength elsewhere in the IT space drove the result. It follows signs of better South Korean export figures. Note we also get China September trade figures tomorrow.
- All else equal a better export backdrop should aid the TWD outlook (notwithstanding the on-going negative carry headwinds versus the USD). The chart below overlays Taiwan export growth versus TWD/USD y/y changes.
- Local equities remain firmer as well (+0.50%), while yesterday saw a chunky +$728.2mn of offshore inflows.
Fig 1: Taiwan Export Growth Versus TWD/USD Y/Y
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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