FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
U.S. Stock Futures Rise as Markets Brace for Jobs and Inflation Data 
Lee Seung-heon Signals Caution on Rate Hikes, Supports Higher Property Taxes to Cool Korea’s Housing Market 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
Indian Refiners Scale Back Russian Oil Imports as U.S.-India Trade Deal Advances 
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.
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