FOREX NEWS | CURRENCY NEWS BY FOREXLIVE

EUR/USD extends sell-off; stops noted

EUR/USD down at 1.3845, extending the sell-off begun overnight.  Stops now noted through 1.3840 and quickly through 1.3830.

EUR/USD gives ground in Asia

EUR./USD down at 1.3872 from North American close Wednesday up around 1.3905. 

Euro zone data due today:

06:30 GMT: French non-farm payrolls Q4 (final) expected +0.2%

07:45 GMT:  French industrial production January expected +0.5% m/m, +5.0% y/y; manufacturing production +0.4% m/m, +5.0% y/y

08:00 GMT: German trade January expected +13.0 bln; current account +10.5 bln

09:00 GMT: ECB monthly report March

09:00 GMT: Italian industrial production January

European stocks set to open lower, DAX around -0.7%.

ForexLive Asian market wrap: Chinese trade data disappoints

• China’s exports crumble in February
• AUD/USD dips and risk-aversion plays emerge after data
• Australian umenployment rate unchanged at 5%
• Headline jobs number shows -10k against the expected +20k. This data hides a big rise in full-time jobs and a sharp drop in part-time work
• Japan’s February CGPI +1.7% YoY
• Japan’s Q4 GDP revised down
• Bank of Korea raises rates by 25bps to 3%
• RBNZ lowers rates by 50bps to 2.5%
• Oil prices rose by 0.4% ahead of tomorrow’s day of rage in Saudi Arabia
• Nikkei -1.4%, Sydney -1.3%, Seoul and Shanghai -1%. Gold $1429/oz.

It has been a reasonably active session in Asia with first the New Zealand rate cut, then Australian job numbers abd finally the Chinese trade data to guarantee some volatility.

The AUD/USD was trading at 1.0105 before the jobs data but fell sharply to 1.0066 on the headline number. Once traders dug a little deeper into the data, the AUD/USD jumped straight back up to 1.0115. The Chinese data, whilst worse than expected, did not come as a total surprise as there had been rumours that the Chinese would engineer a poor number in order to help their negotiating position in upcoming US trade talks. The AUD/USD fell heavily nonetheless, from 1.0090 to a low of 1.0032. Ranges: 1.0032/1.0117

Most of the other pairs have followed the AUD/USD lead. EUR/USD opened at 1.3900 and tried to push higher first up but encountered some decent selling at the session high of 1.3925. The Chinese data and the falling AUD/USD encouraged these early session longs to bail. Ranges: EUR/USD 1.3865/1.3925, EUR/CHF 1.2898/1.2940

Cable has followed the lead of the other pairs, lagging in both directions. Traders have been unwilling to put on much risk ahead of tonights MPC. Ranges: 1.6172/1.6216, EUR/GBP .8566/90

USD/CHF .9277/.9319, USD/JPY 82.67/89

EUR/USD dips with AUD amid mild risk aversion

I don’t think Europe will pay much attention to these moves when they come in but you never know. The Chinese trade data plus falling stockmarkets have introduced a hint of risk aversion into the air. AUD/USD took out decent sized bids round 1.0050. There are more bids tipped around parity but also talk of very large stops sub .9950ish. EUR/USD dipped in sympathy as earlier longs were forced out of the market.

(Apologies for the problems with the comments section but I’m catching up).

Spreads on EU bonds widening again

The latest from AEP at the UK Telegraph.

Quick look at the order board

• EUR/USD: Interest pretty light both sides; bids 1.3840/60, offers 1.3980/95
• AUD/USD: Well chronicled offers above 1.0200, bids 1.0050 and 1.0000/10
• EUR/GBP: Sell orders solid near .8650
• USD/JPY: Bids reported 82.60/65; stops below 82.35

AUD/USD support still holding

As I mentioned earlier, there was an expectation in the market that we might see a poor trade number which would help Chinas bargaining position in upcoming talks. Perhaps I’ve become too cynical in my old age but I take all Chinese data with a bag of salt!

AUD/USD Softer on China Trade Data

A much weaker than expected set of trade numbers that saw exports post only a modest gain of 2.4% thus pushing the trade balance into deficit has seen AUD/USD push back below its post jobs number low of 1.0065. AUD/USD last trades at 1.0064 and whilst one should perhaps look through the trade numbers given that they are heavily impacted by the Chinese New Year holidays – the usual rule is to shoot first then ask questions later.

China Exports Crumble in February but Finger Pointed at Chinese New Year Extended Holiday Break

* Feb Trade Deficit $7.3bln From Year Ago (F’cast $4.95bln)
* Feb Exports +2.4 Pct from Year Ago (F’cast +26.2%)
* Feb Imports +19.4 Pct from Year Ago (F’cast +32.2%)

Headlines Courtesy of  Reuters

Around the markets

US crude oil is 0.3% higher at $104.70 and the market will be getting increasingly jittery ahead of the ‘day of rage’ tomorrow in Saudi Arabia.

Gold is steady at $1429/oz. The Nikkei -1% as are Sydney and Seoul stockmarkets.

The FX market is still very quiet. We are awaiting the Chinese trade data which is due out soon.