China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
FxWirePro: Daily Commodity Tracker - 21st March, 2022 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
USD/TWD is likely to slide further going forward while running a tight correlation with USD/CNH. The TWD is expected to trade in tandem with the CNH given their high correlation that has been increasing since mid-2017, according to the latest research report from Scotiabank.
China will tolerate more appreciation in the yuan to help reduce its merchandise trade surplus with the US as long as the DXY Index remains subdued. In addition, the EUR’s potential strength will prop up the CNH.
Further, the TWD exchange rate is expected to be increasingly determined by demand and supply under the new governor but with excessive movements filtered out in the meantime.
CBC Governor Yang Chin-long told the Finance Committee on March 15 that USD/TWD is not bound by a range of 29-30 and clarified that there is absolutely no the so-called "Yang’s defense line" that refers to a certain level needed to be defended for the TWD.
"We maintain our existing short USD/TWD position targeting 28.5. The pair is now anticipated to trade in a range of 29.0-29.5 with downside risk of falling below the lower bound," the report added.
Lastly, FxWirePro has launched Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
