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Market Review - 15/04/2013 23:04GMT
Yen gains on weak China GDP data
The Japanese currency rose against the greenback after a weaker-than-expected China GDP data spurred risk aversion and a selloff in commodity linked currencies.
China’s GDP expanded by 7.7% last quarter from a year earlier vs forecasts of 8%.
Despite opening lower to 97.80 (Reuters) in New Zealand, the greenback rose to session high at 98.71 at Asian open. However, price tumbled to an intra-day low at 97.55 in Asian morning after China’s economic growth slowed more in the first quarter than economists forecast, triggering risk aversion. Later, dollar pared intra-day losses and rebounded to 98.28 in European morning before falling once more to 97.62. Failure to penetrate previous 97.55 low triggered short-covering and dollar recovered to 98.26 in New York morning. However, the selloff in commodities pressured the pair further lower to 96.35 ahead of New York close.
In New York afternoon, the usd/jpy was under pressure due partly to the explosions in Boston Marathon.
Although the single currency rose to session high at 1.3133 (Reuters) in New Zealand, price retreated to 1.3065 after the release of China GDP data. Euro briefly rebounded to 1.3093 in early European morning before falling to an intra-day low at 1.3053. However, price pared intra-day losses and rose to 1.3108 at New York open before dropping again to 1.3022 in New York afternoon on risk aversion.
Despite staging a brief bounce from 1.5331 (NZ) to 1.5386 in Asian morning, the British pound fell in tandem with euro due to the selloff in Asian equities after the release of weaker-than-expected China's GDP data. Cable staged a rebound to 1.5341 in European morning before falling to an intra-day low at 1.5303 in European morning, however, price recovered to 1.5345 at New York open. Later, sterling came under selling pressure and dropped to 1.5305 in New York afternoon.
In commodity linked currencies, the Australian dollar and the New Zealand dollar tumbled from 1.0525 and 0.8580 to 1.0291 and 0.8379 respectively. Whilst spot gold tumbled to a fresh more than 2-year low at 1349.90.
In other news, ECB's president Mario Draghi said 'in providing liquidity, we cannot and do not want to subsidize banks that are failing; we cannot and do not want to subsidise governments; our monetary policy stance is very accommodative.'
On the data front, U.S. Empire state manufacturing index falls to 3.05 in Apr from prior reading of 9.24, lower than the expectation of 7.00. NAHB housing market index in April falls to 42 from prior reading of 44, weaker than the expectation of 45.
Data to be released on Tuesday:
Australia RBA policy meeting minutes (April), Italy trade balance, U.K. PPI, CPI and RPI data, Eurozone CPI, ZEW surveys, and U.S. CPI, housing starts, building permits, industrial production and capacity utilization.
Yen gains on weak China GDP data
The Japanese currency rose against the greenback after a weaker-than-expected China GDP data spurred risk aversion and a selloff in commodity linked currencies.
China’s GDP expanded by 7.7% last quarter from a year earlier vs forecasts of 8%.
Despite opening lower to 97.80 (Reuters) in New Zealand, the greenback rose to session high at 98.71 at Asian open. However, price tumbled to an intra-day low at 97.55 in Asian morning after China’s economic growth slowed more in the first quarter than economists forecast, triggering risk aversion. Later, dollar pared intra-day losses and rebounded to 98.28 in European morning before falling once more to 97.62. Failure to penetrate previous 97.55 low triggered short-covering and dollar recovered to 98.26 in New York morning. However, the selloff in commodities pressured the pair further lower to 96.35 ahead of New York close.
In New York afternoon, the usd/jpy was under pressure due partly to the explosions in Boston Marathon.
Although the single currency rose to session high at 1.3133 (Reuters) in New Zealand, price retreated to 1.3065 after the release of China GDP data. Euro briefly rebounded to 1.3093 in early European morning before falling to an intra-day low at 1.3053. However, price pared intra-day losses and rose to 1.3108 at New York open before dropping again to 1.3022 in New York afternoon on risk aversion.
Despite staging a brief bounce from 1.5331 (NZ) to 1.5386 in Asian morning, the British pound fell in tandem with euro due to the selloff in Asian equities after the release of weaker-than-expected China's GDP data. Cable staged a rebound to 1.5341 in European morning before falling to an intra-day low at 1.5303 in European morning, however, price recovered to 1.5345 at New York open. Later, sterling came under selling pressure and dropped to 1.5305 in New York afternoon.
In commodity linked currencies, the Australian dollar and the New Zealand dollar tumbled from 1.0525 and 0.8580 to 1.0291 and 0.8379 respectively. Whilst spot gold tumbled to a fresh more than 2-year low at 1349.90.
In other news, ECB's president Mario Draghi said 'in providing liquidity, we cannot and do not want to subsidize banks that are failing; we cannot and do not want to subsidise governments; our monetary policy stance is very accommodative.'
On the data front, U.S. Empire state manufacturing index falls to 3.05 in Apr from prior reading of 9.24, lower than the expectation of 7.00. NAHB housing market index in April falls to 42 from prior reading of 44, weaker than the expectation of 45.
Data to be released on Tuesday:
Australia RBA policy meeting minutes (April), Italy trade balance, U.K. PPI, CPI and RPI data, Eurozone CPI, ZEW surveys, and U.S. CPI, housing starts, building permits, industrial production and capacity utilization.
