CB Minutes Eyed But TWD Holding Its Own

The Taiwanese dollar is one of the outperformers in the session, USD/TWD last at 27.993 having started the session around 28.021. Yesterday the pair spiked at the close to finish at 28.165, the lowest close since 1997, but still stubbornly above 28.00.

• The Taiex is lower today, down around 1.75% after eking out some gains yesterday and snapping a three day losing streak. The index is hampered after Apple and Samsung, two of the biggest users of chips produced in Taiwan, disappointed at earnings.
• Looking ahead the CBRC will release the minutes of its December meeting at 0800GMT/1600HKT. Markets will look for clues of a step up in FX intervention to taper the gain in TWD, amid the risk of being labelled a currency manipulator by the US treasury. It was reported the bank had previously asked custodian banks involved in FX transactions to exercise restraint in trades as it seeks to rein in the soaring local currency through "moral persuasion".
• Exporters have expressed concern over the strength of the currency, but the latest trade figures showed Exports grew 12.0% Y/Y in December, the sixth consecutive month that Taiwan saw exports grow on an annual basis.