Taiwan Dollar: Trade Strength vs. USD Resilience – Commerzbank Insights

Commerzbank highlights Taiwan's record September trade surplus of $23.6bn, driven by a 60.9% surge in AI-related exports. This provides strong fundamental support for the TWD. However, the TWD's gains against the USD are capped, reflecting broader USD resilience due to Fed's hawkish stance and interest rate differentials. The TWD faces a tug-of-war between domestic trade strength and global USD dominance.