TWD: Spot USD/TWD Back Close To 30.00, CBC Governor Says No Line In The Sand

Spot USD/TWD is down close to 0.40% in the first part of Thursday trade, last close to the 30.00 level. Since the sharp dip under 30.00 in early May we haven't revisited this support zone since. Note May 5 lows in the pair were close to 29.60. 

• Broader USD sentiment remains under pressure, as the sell US asset theme was strong through Wednesday trade amidst weaker US Tsys and equities.
• Earlier today we saw a spike in USD/JPY above 144.00 on headlines that the US and Japan agreed that FX rates should be market determined. However, this quickly drew selling interest. These shifts are likely adding to downside momentum in USD/TWD.
• Comments from the CBC Governor late yesterday were off interest, which focused on allowing TWD to surge recently so that market expectations of gains fro TWD could play out. Per BBG, "The Taiwanese dollar has stabilized after “the irrational forces” were released, Yang told the lawmakers back then and added that there is no specific “line in the sand” that the authorities are defending in terms of the exchange rate."
• In the cross asset space, Taiwan equities are weaker, the Taiex down 0.65%, following poor offshore leads in the tech space. Yesterday we had a further $951.7mn in offshore inflows, bringing May to date inflows to just over $8bn.