Intraday Analysis from FXMarketAlerts.com
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China Post: Despite improving score in the economic monitoring indicators, Taiwan's economy remains sluggish as signalled by another 'blue' light flashed by the Council for Economic Planning and Development (CEPD). Unresolved European debt woes and a slowing China continued to weigh on the local economy. CEPD Research Director General Hung Jui-bin however expects the economic condition to improve in the near future, citing the consistent rise of the composite index of leading indicators for the past nine months. He added that economic growth needs to be sustained by domestic demand as weak external conditions makes exports unlikely to rise significantly in the coming months. Separately, Economic Minister Shih Yen-shiang said Taiwan and Japan are expected to sign an economic cooperation pact this year while six other economic agreements with various trading partners are still under negotiation.
On FX, early dip to 29.850+ levels (vs 29.960 prev close) on exporters' offers failed to gain traction with pair rebounding towards 29.900 as Taiex trimmed early gains. Tech charts indicate that pair is expected to stay within broader consolidative range of 29.800-30.000 in the session. BA
