Chinese imports lift the AUD of FOMC minutes
City Index April 10, 2013 1:20 PM
<p>The AUD traded a fresh 10-week high of 1.0519 following the release of the Chinese trade balance. The growth nation posted a trade deficit of […]</p>
The AUD traded a fresh 10-week high of 1.0519 following the release of the Chinese trade balance. The growth nation posted a trade deficit of $0.88 Billion versus an expected surplus of $15.15 billion with the components showing year-on-year exports falling to 10% from an 11.7% expected with imports rising to 14.1% from the 6% consensus. We do note however this data can be seasonal as China has recorded a deficit for February in the past two years.
The JPY has joined the rest of the G10 currencies trading in tight ranges after the recent JPY weakness following the bold steps taken by the BoJ last week. The euro and sterling are still both trading close to range highs with positioning data suggesting the market is short both pairs.
The highlight today will be the FOMC minutes this evening that showed no change in policy at the March meeting with the market focus likely to be on the committee’s assessment of the economic outlook and the discussions on tapering of asset purchases noting improvements in the labour market with good GDP prospects for Q1. Note the minutes are from the March meeting and will not reflect last Friday’s weaker than expected labour report.
Supports 1.3050-1.3000-1.2950 | Resistance 1.3125-1.3150-1.3200
Supports 98.80-98.20-97.50 | Resistance 99.70-100.00-101.45
Supports 1.5280-1.5220-1.5150 | Resistance 1.5380-1.5440-1.5550
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