Weakens Towards 28.00 Handle Pre-NFP

Taiwan dollar is on track for a second weaker close, USD/TWD is up 0.035 at 27.926.

• Following successful trade talks with the US where both sides committed to holding regular talks, a bipartisan group of senators have asked US Trade Representative Tai to resume trade talks with Taiwan with a view to establishing a free trade agreement.
• Elsewhere Taiwan and China have both affirmed their stances. Chinese President Xi said yesterday that achieving national reunification is party's mission and that China must take resolute action to defeat Taiwan independence. In the wake of this Taiwan issued a statement where it said it would firmly safeguard its sovereignty. The Mainland Affairs Council in Taiwan issued a statement that said China should start democratic reform soon; China should renounce its assertive claims and behavior and become a responsible party for regional peace.
• On the coronavirus front there were 47 new cases on Thursday, the government is said to be working on guidance for various industries in case of the outbreak re-emerges after restrictions are eased. Previous guidance indicated that the decision to ease the soft-lockdown or not depends on how the COVID-19 situation develops. In a precautionary measure from today all arrivals need to take three Covid-19 tests after entering Taiwan.