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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
USD/TWD is just off fresh cyclical highs above 32.16, last at 32.13. Resistance around the 32.00 level in spot has given way, although today's move in spot largely reflects catch up with the 1-month NDF, which pushed into the 32.15/20 range overnight (last 32.14). Early 2017 highs around 32.36 remain the upside target from a spot standpoint.
- Onshore equities are trading at fresh cyclical lows, with levels last seen in late 2020 (sub 12760 for the Taiex). The onshore financial regulator is moving to boost defences (see this link for more details).
- Offshore investors continue to unload local equities. The past month has seen close to $5bn in net outflows, see the chart below. Whilst this is away from 2022 trough points, monthly net inflow momentum has barely been positive this year.
- Taiwan's flow picture is also underperforming South Korea by a decent margin, which may reflect Taiwan's greater exposure to tech.
- Coming up later is September export orders. The market looks for a -5.0% y/y dip, versus +2.0% in August. The CBC Governor pointed to harder economic challenges in 2023 during a speech yesterday (see this link for more details).
Fig 1: Taiwan & South Korea Net Equity Flow Trends
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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