100-DMA Draws Near For USD/TWD

Taiwan dollar is weaker today, another victim of the defensive start to the week. USD/TWD is up 0.026 at 28.023. The pair is brushing up against the 100-DMA at 28.05

• There are reports that coronavirus restrictions could be loosened later in July. Health ministry's Chen said over the weekend that a fall in case numbers means that restrictions are unlikely to be extended, meaning the soft lockdown would end on July 26. There were reports earlier in the session that Taiwan was to tighten rules for air crew.
• TWD is also under pressure on the back of dividend remittances with foreigners expected to convert a large portion of the local currency dividends they are set to receive this year. Last year TWD was resilient amid a softer USD and strong demand for tech stocks, while this year investors are expected to seek other sectors outside of Taiwan. TSMC are expected to pay $51bn in dividends this year with the bulk coming in the next month.