Data Eyed

After rising at the open on Monday TWD lost ground throughout the session closing with only minor gains. The pair last down 0.008 at 27.69. The rate has been as low as 27.50 but shows little impetus to break below the level with chatter of unofficial intervention from the central bank.

• Markets look ahead to CPI, WPI and trade data later in the session. Headline inflation is expected to have risen 2.2% from a 2.09% rise last time out. The trade surplus is expected to widen to $6.40bn from $6.18bn with exports expected to have risen 30.5%, the pace slowed slightly from 38.7%. On trade data Goldman Sachs says "exports likely remained strong in May, with their levels over 20% higher than pre-pandemic levels, although the new export order sub-index in the manufacturing PMI survey fell slightly to 65.1 sa in May from 67.2 in April."
• CPI is expected to see upward pressure from food prices due to a drought in April and increased pandemic restrictions likely to have resulted in increased demand, though subdued demand from tighter restrictions could offset this.