TWD Shrugs Off Economic Headwinds Amid Tech Equity Boom, Offshore Inflows

USD/TWD is tracking lower in the first part of dealings, last just under 30.66, +0.30% firmer in TWD terms versus last Friday's closing levels. The 1 month NDF is at 30.58. Earlier May lows in the pair came in around 30.46, a break of which would see USD/TWD spot test back sub 30.60. Upside resistance is evident just above the 30.80 level.

• TWD continues to benefit from the tech related equity rebound. The Taiex is up a further 0.90% so far today, very close to June 2022 highs. The SOX rallied more than 13% in the final two sessions of last week, as Nvidia's results spurred tech/chip related optimism with a bumper sales forecast.
• Offshore inflows into Taiwan stocks have been strong, +$1383.6mn last Friday, bringing weekly flows to just under $2.3bn.
• On the data front we just have the May PMI, which prints on Thurs this week.
• To recap, late last on Friday GDP revisions for Q1 confirmed the economy had been in recession. The government also nudged down its 2023 GDP outlook to 2.04% from 2.1%. Last November the forecast sat at 2.75%.