USD/TWD Holding Sub 32.00 Ahead Of Nvidia Earnings, Monitoring Indicator Off Cycle Highs

Spot USD/TWD is relatively steady in the first part of Wednesday dealings, the pair last near 31.90. Recent lows rest at 31.76. The pair remains comfortably sub all key EMAs, with the 200-day near 32.08 the closest on the top side. Sentiment may remain relatively steady in the FX space ahead of key US tech earnings due tomorrow.

• Market jitters ahead of Nvidia's results (due early Thursday Asia Pac time) continue, with Nasdaq futures lower in the first part of trade today.
• This could have spill over implications for chip maker TSMC and broader Taiwan equity sentiment, along with TWD FX. The Taiex has largely spent recent weeks tracking sideways above the 22000 level.
• The general trend around equity flows is net selling by offshore investors. This week has seen -$555.8mn in net outflow, bringing August to date outflows to nearly -$1.2bn. Still, net outflows were close to $5bn in early August when global recession fears gripped markets.
• On the data front the monitoring indicator for July eased to 35 late yesterday, off recent highs of 38. The gauge, which is a measure of economic momentum, is still elevated by historical standards.
• The local data calendar is empty until early September when the PMI is due.