24 Oct 2013
Session Recap: Bullish data from China causes a partial retrace of Thursday’s big moves
FXstreet.com (Barcelona) - After global managers and traders were caught flat-footed with the unsettling news out of China on Wednesday, Thursday’s Chinese data reversed the bearishness for risk assets –partially.
Chinese PMI data came out better-than-expected
The Chinese PMI numbers came out at 50.9 vs 50.5 expected and 50.2 last. The data represents a seven-month high. The news gave risk currencies like the Aussie and New Zealand Dollars enough of a tailwind that they were able to re-trace a whopping 38.2% of Wednesday’s decline.
New Zealand data bullish for the kiwi
The New Zealand Trade Balance data that came out Thursday (-199 million vs. -750 million consensus and vs. -1191 million in the previous month) was taken as bullish for the kiwi. Unfortunately, it appears that for now everything is taking a back seat to the Chinese debt concerns.
Trading action in the majors says “risk on” is the mood today after Wednesday’s global angst
A quick scan of the charts of the major forex futures reveals a “risk on” mode taking effect taking hold early Thursday. The euro, Aussie and Canadian Dollars are all up while the safe havens of the greenback, the Yen and the Franc all trading in the red.
Main headlines in Asia
Chinese banking headline catches over-positioned market on the wrong foot
Watch correlation between higher EUR and ECB rhetoric to talk it down
Merkel calls Obama about US spying on her phone
New Zealand Trade Balance (MoM) rises to $-199M in September from $-1191M
Hedge funds prepare to mop up bad Spanish company loans
China HSBC PMI at a 7-month high
Key Japanese players to send the Yen lower - Nomura
RBA's Lowe Further AUD depreciation would help rebalance economy
Chinese PMI data came out better-than-expected
The Chinese PMI numbers came out at 50.9 vs 50.5 expected and 50.2 last. The data represents a seven-month high. The news gave risk currencies like the Aussie and New Zealand Dollars enough of a tailwind that they were able to re-trace a whopping 38.2% of Wednesday’s decline.
New Zealand data bullish for the kiwi
The New Zealand Trade Balance data that came out Thursday (-199 million vs. -750 million consensus and vs. -1191 million in the previous month) was taken as bullish for the kiwi. Unfortunately, it appears that for now everything is taking a back seat to the Chinese debt concerns.
Trading action in the majors says “risk on” is the mood today after Wednesday’s global angst
A quick scan of the charts of the major forex futures reveals a “risk on” mode taking effect taking hold early Thursday. The euro, Aussie and Canadian Dollars are all up while the safe havens of the greenback, the Yen and the Franc all trading in the red.
Main headlines in Asia
Chinese banking headline catches over-positioned market on the wrong foot
Watch correlation between higher EUR and ECB rhetoric to talk it down
Merkel calls Obama about US spying on her phone
New Zealand Trade Balance (MoM) rises to $-199M in September from $-1191M
Hedge funds prepare to mop up bad Spanish company loans
China HSBC PMI at a 7-month high
Key Japanese players to send the Yen lower - Nomura
RBA's Lowe Further AUD depreciation would help rebalance economy