Risk off on China slowdown & dollar sees further gains
City Index March 10, 2014 1:43 PM
<p>The dollar has seen further gains following a robust US employment report on Friday that showed gains of a 175k versus the 149k consensus despite […]</p>
The dollar has seen further gains following a robust US employment report on Friday that showed gains of a 175k versus the 149k consensus despite the recent bad weather across the pond.
The risk trade was initially lower on the FX market open this week in Auckland as data released over the weekend from China disappointed; although the Lunar New Year public holiday is the likely culprit for the miss.
Chinese exports fell 18.1% versus a forecast of a drop of 7.5%, with the prior month at minus 10.6% as imports rose to 10.1% from 10.0% and the consensus estimate of 10%.
The Nikkei decline initially saw the yen strengthen following disappointing Q4 GDP from Japan as the already disappointing 1% reading was revised lower to 0.7%.
Keep an eye on the EU group meeting in Brussels today, along with Canadian housing data this afternoon, which I doubt will shake the FX markets.
I expect the focus to remain on the Ukraine crisis following reports warning shots have been fired in the Crimea to ward off an international team monitoring from an observation plane and German Chancellor Angela Merkel telling Russian President, Putin, that his actions have violated international law.
Supports 1.3825-1.3780-1.3715 | Resistance 1.3920-1.3980-1.4000
Supports 102.75-102.15-101.65 | Resistance 103.80-104.20-105.00
Supports 1.6700-1.6665-1.6610 | Resistance 1.6770-1.6820-1.6880
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