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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 spot sits sub 31.90 in early Friday dealings, fresh lows back to mid September for the pair. We are close to 100-day EMA (near 31.87), a support level we haven't breached since the first half of 2023.
- TWD, typically a low beta currency in Asia FX, is up ~1.5% in the past week, the third best performer in the region behind KRW and THB.
- The TWD has benefited from a sharp rise in offshore equity inflows this past week, nearly $3.5bn. The chart below inverts these weekly inflows against USD/TWD. We are tracking for the best weekly inflow since February of this year.
- Inflows have been supported by lower US real yields, which has aided tech related equity sentiment more broadly. Sentiment has also been aided post yesterday's Xi-Biden leaders summit, where the China leader dialed back concerns around China military action against Taiwan.
- Lower oil prices are another TWD positive, like elsewhere in the region.
- On the data front, next Monday delivers export orders.
Fig 1: USD/TWD Versus Offshore Net Equity Flows (Inverted)
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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