Stronger As GDP and PMI Data Beats Expectations

Taiwan dollar is stronger shortly after the open, USD/TWD dropping from Friday's closing highs. The pair last trades down 0.021 at 27.94.

• Data earlier saw IHS Markit Taiwan July Manufacturing PMI rise to 59.7 from 57.6 in June. Commenting on the latest survey results, Annabel Fiddes, Economics Associate Director at IHS Markit, said: "Taiwan's manufacturing sector regained momentum in July, with firms reporting sharper increases in both output and new work. The data therefore indicate that the sector is expanding at one of the strongest rates seen over the past decade, boosted by firmer demand across key export markets such as Europe, mainland China and the US.
• Data late on Friday saw advance Q2 GDP estimates beat expectations at 7.47% against consensus 6.65% but still slower than 8.92% in Q1. A lockdown related reduction in consumption is being blamed for the slowdown, but strong exports continue to support.
• Elsewhere, there were reports in the Commercial Times that the government is drafting details to release stimulus vouchers as early as September in an attempt to boost consumption.
• There is no more domestic economic data on the docket today, participants look ahead to CPI data later in the week, while the pace of vaccinations in Taiwan has accelerated which could provide tailwinds for TWD.