On Track To Rise For Fourth Day

Taiwan dollar is higher again, TWD is on track for a fourth day of gains. The pair last changes hands at 28.411. TWD still boosted by yesterday's reports that Taiwanese authorities were considering travel bubble agreements.

• After market the Taiwan central bank said it smoothed forex market volatility in March, despite being on the US Treasury's currency manipulator watchlist. Data showed forex reserves fell $4.28b in March from end-Feb., the first M/M decline since May 2019. In that period USD/TWD has risen 1.14% while 1-month implied volatility in USD/TWD has fallen around 90bps to 4.82%.
• Elsewhere, the finance ministry and lawmakers have reached an agreement to ratify new property market rules from July 1. Under new rules higher taxes will be imposed on properties that are sold within two years of purchase to curb speculation in housing market.
• Relations with China remain fraught, fifteen Chinese aircraft entered Taiwan's ADIZ yesterday, while it was reported that Chinese military followed and monitored the USS John S. McCain destroyer as it sailed through the Taiwan Strait, a representative said the move by the US sends the wrong signal.
• Taiwan CPI is due at 0900BST/1700HKT, the core figure is expected to have dipped in March, consensus is for 0.90% from 1.63% previously.