Gets Close To CBC Intervention Level

Taiwan dollar is stronger again, USD/TWD last at 28.072, the pair has lost 1.4% in the past four sessions. The central noted yesterday that the government intends to raise GDP forecasts, while there are expectations that the central bank will limit from intervention after being warned by the US Treasury. The central bank said it would only intervene in extraordinary circumstances, but this message was somewhat watered down when the vast scale of intervention by the CBC is considered. The bank has previously resolutely defended the 28.00 handle, the rate draws perilously close.

• Commerzbank are positive on TWD: "The Taiwan's central bank said today that the authorities are planning to raise the GDP forecast for 2021 again, after it last month revised up forecast to 4.53% from 3.68%. The strong export performance, supported by global demand particularly for the microchips, is the major driver for further growth upgrade." They add that "TWD outlook looks brighter than the Asian peers given both economic and political factors."
• Markets look ahead to export orders data for March later in the session, the print is expected to have risen 34.9%, from 48.5% in February.