TWD had a decent session overnight,..........>

TAIWAN: TWD had a decent session overnight, closing at the best levels against

the USD since May20, with offshore TWD also extending strength throughout

European and US trading hours. The moves in TWD come alongside confirmation that

the central bank/finance ministry intervened on the latest dip in the TWD, as FX

reserves sank by around $400mln across May. The central bank statement commented

that the bank "stepped in to smooth out excess volatility" before specifying

that their aim is to combat unwarranted volatility and not reverse the course of

the market.

-Despite the recovery in TWD spot, options traders are still opting for USD/TWD

upside exposure, with call volumes outweighing that of puts by a considerable

margin. Call strikes at 31.90 and 32.50 were particularly popular. Spot hasn't

traded at 32.50 since June 2016.

-Trade balance data due on June 10th takes focus from here as well as any test

of the 32.00 handle, which appears to be the central bank's tolerance band for

TWD volatility.