ForexLive Asia Wrap: Chinese Trade Data Blasts Through Expectations

View Comments

  • China – December Trade Balance came in at a huge +$31.60B (vs. $20.00B expected)
  • China – December Export Trade 14.1%Y/Y (Expected +5.0% Y/Y)
  • China – December Import Trade 6.0%Y/Y (Expected +3.5% Y/Y)
  • Australian Building approvals for November were +2.9% M/M (and up 13.2% Y/Y) vs. Prior -7.6% M/M (+14.5% Y/Y) and against market expectation of +3.0% M/M (+11.6% Y/Y)
  • China: New Local Currency Loans came in weaker at 454.3B Yuan vs. expected at 550 Bn
  • New Zealand – December ANZ Commodity Price Index +1.0% M/M (vs +1.0% in November)
  • Japan – December Official FX Reserve Assets $1268.1B (vs. Nov was -$1270.9B)
  • NZ December QV House Prices 5.7% Y/Y (unchanged from November)
  • Data – New Zealand November Trade Balance -700M (vs. prior of -718M and -670M expected)

The big news of the day was the Chinese December trade surplus; it came in much higher than expectations at $31.6B (+$20B was expected). The AUD/USD was, of course, an immediate beneficiary, gapping a quarter of a cent higher, progressing to 1.0455 and then consolidating its gains through the afternoon. It had been as low as 1.0494.
USD/JPY was the mover earlier in the day. A headline crossed the wires from the Asahi-Shimbun saying the BOJ was to introduce a 2% inflation target at its next meeting, which, of course, we all know, and the USD/JPY popped 10 points then started to move higher; trading as high as 88.22 into the fix before settling in a 00/15 range for the balance of the day.
EUR/USD was range-bound ahead of the ECB meeting due today in Europe; Cable, too was quiet ahead of the BoE MPC meeting also due today.

Author: Eamonn Sheridan

Eamonn Sheridan worked with Bankers Trust Australia for 13 years as a Spot foreign exchange dealer, trading across all major currencies and all time zones. He rose to a Vice President position, running spot operations during the busy European time, leaving the bank just prior to it being sold to concentrate on running his own business in the ‘real world’! The markets, however, had him hooked – he continued to trade equities, CFDs and then on to futures, giving him broad experience across financial markets. He is now active in FX and equity index futures as well as writing for ForexLive™. Eamonn is a graduate of The University of Melbourne in Australia and lives in New South Wales.

2013-01-10T04:58:12+0000

All|Asia Pacific|Forex Headlines

Eamonn Sheridan

Top

© Copyright 2014 ForexLive™  |  Advertise With Us  |  Login To Comment  |  Sitemap

HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FOREXLIVE™ provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FOREXLIVE™ specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FOREXLIVE™ expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.