ForexLive Asia FX news wrap: China Feb. exports plunge

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Friday 8 March 2019

Asia FX stabilised somewhat after the Draghi drubbing for currencies during Europe and US time and awaiting NFP numbers from the US on Friday.

The early part of the session saw a few data releases (see bullets above) without too much currency impact. NZD and yen both traded a little stronger.

The bigger focus of the session was trade balance data from China, which came in at a huge miss, exports collapsing (do bear in mind the January/February distortions due to the variable timings of the lunar new year holidays ... even still though, exports plunged in February to their biggest drop in 3 years). And don't ignore the plummet in imports also, indicative of a softening in domestic demand. I really should note that data in the weeks (months) preceding have been indicating very poor global trading and economic conditions - PMIs across Asia have been awful.

The trade balance was interesting for another reason, a major wire reported February exports were up 16.6% in yuan terms, a few seconds later correcting that to down 16.6%. If you are looking at your charts and wondering about the AUD/USD spike towards 0.7030 then almost immediate drop to 0.7010, there you go ... When the dust settled AUD was not really much changed, down a little. It had traded a touch stronger for the session, to above 0.7025, gave some back on the NAb RBA announcement and is back near session lows after the Chinese data.

USD/JPY was another mover, losing ground throughout the session and extending the losses after the Chinese data. Not a huge range, 111.65/111.35 or so was pretty much it.

Cable drifted net higher by a few points, EUR/USD ditto but not so much.

Regional equities took their direction from the falls in the US overnight, Chinese shares did not fare well at all (Shanghai Comp chart):

Forex news for Asia trading Friday 8 March 2019

Still to come:

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