USD/TWD Firms But Remains Sub October Highs, IP & Unemployment Data Due Later

Spot USD/TWD is a little higher in the first part of Monday trade. The pair last at 32.36. We are sub earlier October highs closer to 32.45, but dips in the pair remain supported. The 20-day EMA sits back 32.23, with dips to and just under this level being supported in recent months.

• Coming up later we September IP. The market looks for -8.0% y/y, versus -10.53% prior. Also out is the September unemployment rate, which is expected to hold steady at 3.41%.
• This follows last Friday's export orders data for September, which was a bit weaker than expected at -15.6% y/y (-13.9% forecast), with tech and IT related sub indices dipping further in y/y terms. This goes against the recent run of better than expected export data.
• In the cross asset space, onshore equities are down today, off 0.90% for the Taiex. Negative US leads from the end of last week not helping, while a reported probe into Foxconn, a key Apple supplier is an additional headwind. The Taiwan government has stated it will help Hon Hai (the subsidiary impacted) if need be (see this BBG link).
• Offshore investor flows remained large last week (-$1769mn).