Forex Flash: Exiting USD/TWD short - Westpac

Westpac has exited a short USD/TWD position with the reasoning that "the atmospherics around Asian currencies is at risk of turning more bearish in the near term."

According to Westpac FX strategist Jonathan Cavenag, "sentiment in equity and commodity markets is pushing down our ADXY sentiment gauge, while other 'risk' currencies such as AUD and NZD are breaking down through key support levels."

"We do not expect USD/TWD to push dramatically higher but at the same time the catalysts for a break to the downside in this pair do not seem there, particularly given the risks of a broader risk off move in markets" he adds.