Taiwan Not A Manipulator

Taiwan dollar is stronger in early trade after a report from the US Treasury refrained from designating any trading partner, including Taiwan, as a currency manipulator. USD/TWD last down 0.067 at 28.264, the lowest since March 18.

• The new assessments signal the Biden administration is taking a less confrontational approach to international currency policy. The report did allude to the US preference that Taiwan's central bank should allow appreciation of TWD. The report said the US would start enhanced bilateral engagement with Taiwan to address structural undervaluation, and that the CBC should refrain from intervention – a process the central bank calls smoothing. The US alleges that TWD could be undervalued by up to 21%. In response Taiwan urged the US to temporarily ease the conditions of currency manipulation for trading partners during the struggles of the pandemic.
• Elsewhere, Taiwan Central bank Governor Yang on the wires, says he sees steady economic growth this year, with upwards revisions to economic growth forecasts possible. Expects economic growth to be led by private consumption and investment.
• No local data on the docket data, markets await Export Orders on Tuesday and Unemployment Rate on Thursday, following by Industrial Production on Friday.