Losing Ground Despite Robust Manufacturing Activity

Taiwan dollar is weaker, losing ground for a second day and consolidating over 28.50. March saw TWD post its first monthly decline since for 8 months. USD/TWD last up 0.007 at 28.540, but came off session highs following PMI data.

• Markit Taiwan PMI Manufacturing rose to 60.8 from 60.4 previously, the March print was the fastest in 11 years. Annabel Fiddes, Economics Associate Director at IHS Markit, said: "The sustained and strong increases in new orders suggest that the sector will continue to see robust growth as we head into the second quarter, particularly as overseas orders have continued to recover at a rapid pace. "However, the survey also highlights potential constraints for future performance. Crucially, a lack of inputs at vendors and bottlenecks in supply chains drove a record increase in delivery times for inputs which, if not remedied, could squeeze capacity in the months ahead and lead to further marked rises in backlogs."
• Australia and the US are in discussions over potential joint responses to a war with China over Taiwan. Australia has this fair not committed to part in a conflict with China over Taiwan, though the US has only said it will help Taiwan defend itself, rather than taking part in open conflict.