TWD/CNH: Broad uptrend unbroken – ANZ

TWD/CNH is about the only CNH cross for which strategists at ANZ Bank have a small preference to stay long as an upward sloping support line, which has been in place since 2015, is intact. 

Key quotes

“The strength of TWD reflects the government’s success in containing COVID-19, as well as the outperformance of Taiwan’s tech/semiconductor sector which has benefited from increased demand during the global lockdown.” 

“Sellers of the cross can lock in 0.240 (or higher) for tenors of 3M or longer.” 

“For buyers, immediate support is at 0.232-0.234, seen in February-March 2020.”