Rangebound

USD/TWD continues to hover between 27.85 and 27.95, the pair last slightly lower on the day at 27.925. TWD came under pressure yesterday as the Taiex dropped almost 2% with the electronics sector taking a hit. TSMC and MediaTek both sustained heavy losses.

• There has also been a small uptick in coronavirus cases with two new local cases on Monday. Taiwan has now made the decision to ban non-resident travelers who have been to India in the past 14 days.
• Volumes are expected to be thin today. A holiday in Japan will leave its cash markets closed until London hours, with an ongoing holiday in China sapping further liquidity from the space.
• Looking ahead Taiwan foreign reserves data for April are due on Wednesday, markets will look for confirmation that the central bank has refrained from, or at least reduced, FX intervention. Later in the week sees the release of inflation data (Thursday) and trade balance data (Friday).