USDTWD has rejected its first attempts at....>

TAIWAN: USDTWD has rejected its first attempts at key resistance at the 30.00

level and appears set for a period of range trading between this level and its

200DMA which currently sits at 29.80.

- The TDW, a safe-haven in the region, has underperformed over the past year,

recently weakening in spite of the relative stability of the Chinese yuan, with

which is typically trades in close relation with.

- The currency has also weakened despite a continued build up in foreign

exchange reserves amid double-digit trade surpluses suggesting that the central

bank is the primary driving force behind the currency's underperformance.

- Taiwan's revised Q1 real GDP figures are due to be released today and are

likely to show the economy growing at around a 3.0% clip. While solid, this

growth rate is unlikely to see the bank change its tact of keeping its currency

artificially weak while ever threats to global trade remain salient.