CPI Weakens On Lockdown Measures, Exports Resilient

Taiwan dollar is weaker again today, USD/TWD last up 0.013 at 27.998 having briefly looked over the 28.00 handle; the rate hasn't made a sustained break over the level since May.

• There is still concern over coronavirus numbers but there are reports that the government could unveil plans to partially ease movement restrictions today. There were 39 cases yesterday, meaning new cases have been below 80 for seven days.
• Elsewhere data released late yesterday showed exports remained buoyant, but the trade surplus narrowed due to a jump in imports as crude prices rise. Exports rose 35.1% to a record high in June fueled by demand for electronics. Elsewhere CPI rose less than expected, printing 1.89% Y/Y in June, while core prices rose 1.36%. The weak CPI prints show the effects of a lockdown during the period, data last month showed unemployment rose to the highest in eight years.