On Track For Three Day Losing Streak

Taiwan dollar finished the session slightly weaker yesterday, though regained lost ground throughout the session after weakening sharply at the open. The pair last up 0.015 at 27.83, TWD on track for a three day losing streak after rising for four straight sessions last week.

• Data late yesterday showed Taiwan posted strong exports again, exports rose 34.7% in July from a year earlier to $37.9bn, the highest for any month in data back to 1981. Total imports rose 41% to $32.05bn, resulting in a $5.9bn trade surplus. The strength was once again attributed to global electronics demand. After the data the economy ministry said exports in August are expected to be between $37.4bn and $38.8bn. Following the trade data, markets look ahead to GDP figures later this week.
• On the geopolitical front Taiwan President Tsai said comments about the Taiwan Strait from US and Japan will send a signal to China. Tsai said Taiwan's policy is maintaining the status quo with China; one key is to reduce high dependence on China's production and diversify trade and investment adding that Taiwan will not accept Beijing's "one country, two systems".