The much hyped Chinese trade balance data failed to ignite any dynamic moves as currency pairs in Asia remained confined to ranges once again. Chinese trade balance data that many had assumed would instigate moves in risk today failed to do so as it came in on target at 7.6B, down from last month’s 14.2B. However, Exports came in at 45.7% vs. the projected 38.3%, but did nothing but spark talk of inflation and overheated markets. Market watchers are now looking ahead to tomorrow’s Chinese data which will include CPI and PPI.
AUD/USD caught bids early in the day on the back of some hawkish comments from the RBA, which stated that the country’s economic growth was at or above average for the next couple of years. AUD/USD topped 0.9160 early and remained mostly near 0.9150 after a visit to 0.9130 lows. Looking at the UK, the GBP/USD remained soft, dropping from 1.5015 to 1.4955 lows as concerns over the nations credit rating were voiced by Fitch. The same credit concerns echoed to the Euro Zone’s Portugal, thus keeping the EUR/USD harbored near the 1.3600 level in a less than 30 pip range. USD/JPY remained mired in a 20 pip range near the all too familiar 90.00 level again in Asia, staying clear of a rumored big 91.00 option strike due to expire tomorrow in New York. Yen crosses traded sideways for the session.
Tomorrow brings fresh challenges with a good deal of high end data including the New Zealand interest rate decision, which is expected to remain unchanged at 2.50%, Aussie employment data, and last, but not least, Chinese CPI, PPI and retail sales.
