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Taiwan dollar is stronger in early trade after hitting a three-month low, USD/TWD gapping lower at the open and dropping towards the 28.00 handle after decisively breaking the level on Monday. The pair last down 0.046 at 28.021.
- On the geopolitical front US Deputy Secretary of State Sherman spoke about peace in the Taiwan Strait which led to China accusing the US of trying to form confrontational alliances.
- In terms of coronavirus Taiwan could announce plans to relax its COVID-19 restrictions as early as today, it is expected that rules to eased will include the number of people of social gatherings while social distancing is expected to remain as well as mask wearing. Meanwhile, Taiwan's Tzu Chi Foundation yesterday said it had signed an agreement with the Chinese distributor of the vaccine by BioNTech to buy 5m doses and would pass them on to health officials in Taiwan. There were 25 new cases in the past 24 hours.
- Markets look ahead to unemployment data later in the session, the June unemployment rate is expected to rise slightly to 4.25% from 4.15% in May.