9 Dec 2013
Session recap: Big Chinese data, big Japanese data, but small movements in currencies
FXstreet.com (Barcelona) - This Asian session has brought traders plenty of data off of which they could trade. But for all of the data and all of the short-term gyrations, the net results have been rather muted movements almost across the board for the major pairs.
Chinese Trade Balance sets bullish tone at the open; Chinese inflation data comes in light
Chinese Trade Balance data came out showing a massive trade surplus for china and that news gave the risk currencies a boost at the open of trading for the week. That initial bullish reaction has been given back for the most part following the rest of the session’s data releases. One of those releases was the Chinese inflation data – which actually came out lower than expected. That data may have seemed on the surface to open the door for china to be more growth-oriented, the trading action in the key risk gauges in the currency markets failed to show much movement off of the numbers.
Japanese GDP for Q3 disappoints / pressures Yen; EcoWatchers Survey provides a boost
The Yen reacted counter-intuitively all session Monday. First, the Yen showed strength even as Japanese GDP came out lighter-than-expected. Then, the Yen showed weakness even though the Japanese Eco Watchers Survey came out better-than-expected. The answer for the trading activity is that the Yen clearly is trading off of the Nikkei’s movements and not necessarily off of the news.
Main headlines in Asia:
EUR/USD bucking reason by continuing to rise in the face of better US data
Japan's final Q3 GDP worse-than-expected
EUR/JPY off highs but nicely higher for session on “risk on” mood and sluggish Japanese data
Gold opens the week on a flat note; 1172 technical target looms
Chinese Trade Balance sets bullish tone at the open; Chinese inflation data comes in light
Chinese Trade Balance data came out showing a massive trade surplus for china and that news gave the risk currencies a boost at the open of trading for the week. That initial bullish reaction has been given back for the most part following the rest of the session’s data releases. One of those releases was the Chinese inflation data – which actually came out lower than expected. That data may have seemed on the surface to open the door for china to be more growth-oriented, the trading action in the key risk gauges in the currency markets failed to show much movement off of the numbers.
Japanese GDP for Q3 disappoints / pressures Yen; EcoWatchers Survey provides a boost
The Yen reacted counter-intuitively all session Monday. First, the Yen showed strength even as Japanese GDP came out lighter-than-expected. Then, the Yen showed weakness even though the Japanese Eco Watchers Survey came out better-than-expected. The answer for the trading activity is that the Yen clearly is trading off of the Nikkei’s movements and not necessarily off of the news.
Main headlines in Asia:
EUR/USD bucking reason by continuing to rise in the face of better US data
Japan's final Q3 GDP worse-than-expected
EUR/JPY off highs but nicely higher for session on “risk on” mood and sluggish Japanese data
Gold opens the week on a flat note; 1172 technical target looms