- Chinese imports, led by iron ore, fell sharply in January, by over 15% compared with last year
- Chinese exports were also lower than expected at -0.5%
- The trade surplus increased sharply on the lower imports, $27.3 billion
- The Q4 current account surplus was just under $60 billion
- PBOC fixed the USD/CNY mid-rate at a new record low, 6.2937
- RBA released its quarterly monetary policy statement
- Policy is appropriate, growth expected to be steady at around 3.5% but much depends on continued strong growth in commodity/mining
- Japanese domestic CGPI +0.5% YoY
- Greek FinMin gives his view on ongoing talks with Troika, PSI
- Regional markets -0.5% on average
- Gold $1734/oz; Oil $99.50/bbl
The AUD has been the main mover today, losing ground across the board and falling by almost 1 cent against the USD after Chinese trade data showed a marked slowing particularly in the importation of iron ore. The RBA earlier in the day had predicated their forecasts on continued strong mining investment and if these Chinese import figures are confirmed, Australian rate cuts will be back on the cards. AUD/USD stalled for a lengthy period ahead of previous lows at 1.0730 but that level has now broken in afternoon trade. Ranges: 1.0703/93
EUR/USD has fallen in sympathy with the AUD/USD, but EUR/AUD buying has given it a lift. Bids at 1.3260 have been filled in afternoon trade. There have been no fresh Greece-related headlines with negotiations set to continue to cut another EUR300 million off the budget and to reach a deal with PSI. Ranges: 1.3257/91
USD/JPY was not able to add to overnight momentum and has traded sideways in a 77.53/75 range.
Cable 1.5785/1.5819; EUR/CHF 1.2105/15
