Consolidates Below 28.00 Handle Against USD

Taiwan dollar is stronger, USD/TWD gapping lower at the open thanks to more constructive risk sentiment and a weaker greenback. The pair fell through the 28.00 handle during yesterday's session and held below the level into the close, the rate now consolidating underneath the level at 27.97 last while the Taiex is in positive territory.

• On the geopolitical front US Senator Risch said "Taiwan's absence from the World Health Assembly over the last several years is yet another example of the Chinese government's push to isolate Taiwan internationally, including on issues that matter to all of us like public health". The US is trying to help Taiwan regain its WHO observer status. Just crossing some wires are comments from China that it can respond to threats and provocations after noting US warships in the Taiwan Strait.
• Participants await CBC (Taiwan Central Bank) minutes later today (usually around 0900BST/1600HKT), the Central Bank kept interest rates on hold but upgraded growth forecasts. Markets will also look ahead to Q2 advance GDP data tomorrow.