ForexLive Asia Wrap: Chinese Trade Data Blasts Through Expectations

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  • 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.


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Eamonn Sheridan


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