HALISTER1: USD/TWD NDFs Rise May Stop Near 50-DMA If Output Beats: Analysis

USD/TWD NDFs Rise May Stop Near 50-DMA If Output Beats: Analysis

(Bloomberg) -- Below-forecast expansion in Taiwan’s July industrial production may see USD/TWD 1-mo. NDF’s rally stall near 31.885 level, Bloomberg strategist Andrew Robinson writes.
  • Factory output probably rose 1.70% y/y after 0.88% gain in June, median est. in Bloomberg survey shows; ests. range from +0.20% to +2.80%; data due 4pm local time tomorrow
    • Best forecaster ranked by Bloomberg sees a 1.30% increase
  • 1-mo. NDF rises 0.8% to 31.862 today; NDF has not traded above 50-DMA since June 28
    • Williams %R in overbought territory at -5, suggesting rally could be getting stretched
    • Additional resistance found at 31.907, 61.8% Fibonacci retracement of the drop from June 27 to Aug. 10
  • NOTE: Andrew Robinson is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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