- China’s trade data for December showed that exports are still falling, but so too are imports, leading to a better than expected trade balance
- UK Economy: BCC say growth stagnated in Q4
- UK Economy: BRC data shows strong recovery in retail sales
- USD/CNY fixed at 6.3171
- Australian November building approvals +8.4% MoM (7% expected)
- Regional bourses gain 1% on average
- Gold +0.5% to $1616/oz; Oil $101.50/bbl
The NZD and the AUD have been the star performers over the last 24 hours and they have led the way again during Asian trade. Modestly better Australian building approvals, higher equity markets, and better-than-expected Chinese trade data tell only half the story. The rest of the story has been the relentless buying of the NZD in particular, with virtually no pullbacks to be seen. AUD/USD stalled at length ahead of sell orders near 1.0290 but has broken higher in late trade to trigger stops above 1.0300. Ranges: AUD/USD 1.0224/1.0318; NZD/USD .7861/.7942.
EUR/USD has drifted higher in the wake of the AUD and NZD, almost reluctantly at times. We finish the session at highs near 1.2790, after closing in NY at 1.2770, but the single currency lost ground against the commodity currencies. Pre-fix buying of EUR/JPY did give an early lift but this momentum soon waned. There is talk of massive stops in EUR/JPY below 97.00 (EUR10 billion). Ranges: EUR/USD 1.2758/93; EUR/JPY 98.02/27.
USD/CHF did move lower in early trade when the market tried to take EUR/CHF below 1.2100, but the buyers prevailed. Ranges: .9473/99; EUR/CHF 1.2104/24
USD/JPY remains heavy despite talk of large bids at 76.50. Range: 76.76/90.
Cable 1.5447/81; EUR/GBP .8247/69.