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USD/TWD Rebounds As Tech Equities Falter

TWD

USD/TWD spot has already unwound a good chunk of yesterday's losses, the pair last around 31.85, +0.20% firmer. We are still sub recent highs near 32.00, while yesterday's lows came in close to 31.74. The Taiex is tracking close to 1.3% weaker at this stage, also unwinding a good proportion of yesterday's rally.

  • Broader tech equity sentiment faltered in US trade on Thursday, with the SOX off more than 3%, which has carried over into Asia Pac markets today. Such sentiment is likely to be key for TWD in the near term.
  • Note we had +$427.3mn in net equity outflows yesterday into Taiwan shares, with just over $1bn for the week. Outflows from South Korean markets have been recorded so far today, with holdings also potentially trimmed from Taiwan.

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