Impressive Chinese trade data
City Index May 8, 2013 2:05 PM
<p>Asian equities are trading in positive territory following a good session for the S&P, giving a risk on feel to a subdued FX market. The […]</p>
Asian equities are trading in positive territory following a good session for the S&P, giving a risk on feel to a subdued FX market.
The catalyst overnight comes from stronger Chinese trade data which is good news for everyone with the trade balance at +$18.16 billion versus the consensus forecast of $15.1 billion. The components show exports at +14.7% and imports at 16.8% versus an expected 10.3% and 13.9% respectively.
The NZD took centre stage in a very quite FX market following comments from RBNZ Governor Wheeler that the NZD was too strong and that the New Zealand central bank had been selling the kiwi to limit its strength. Wheeler added that they will intervene again if necessary. The market reaction was a 90-point decline in the bird.
Following yesterday’s robust German factory orders data the market will be looking at German industrial production data at 11am London time this morning for confirmation that the manufacturing sector is bouncing back. European data has taken extra importance this week following comments on Monday from ECB President Draghi that the ECB will be watching the incoming data and are prepared to act again if required.
Supports 1.3030-1.2975-1.2955 | Resistance 1.3170-1.3245-1.3315
Supports 98.50-97.80-97.00 | Resistance 99.50-100.00-100.60
Supports 1.5410-1.5330-1.5250 | Resistance 1.5525-1.5600-1.5630