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12 Feb 2014
Flash: Risk appetite improves on Chinese trade data - BTMU
FXStreet (Edinburgh) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ notes that risk appetite has been helped by Chinese trade data.
Key Quotes
"Risk appetite today has also been helped by the trade data from China that revealed a notable upturn in exports – the annual rate jumped from 4.3% in December to 10.6% in January, although the reaction has been tempered by uncertainty over how the Chinese New Year may have impacted the data (was expected to be negative, hence the low consensus) and the usual concerns over the data being skewed by hot money inflows being masked as export revenues. Still, the commodities import side of the trade data was impressive."
"Imports of crude oil, iron ore and copper all posted record highs in volume terms for the first month of the year and clearly belies the market consensus of slowing Chinese growth. This is good news for Australia and is consistent with the December trade data from Australia that revealed strong demand from China. The good news keeps coming for the Australian dollar."
Key Quotes
"Risk appetite today has also been helped by the trade data from China that revealed a notable upturn in exports – the annual rate jumped from 4.3% in December to 10.6% in January, although the reaction has been tempered by uncertainty over how the Chinese New Year may have impacted the data (was expected to be negative, hence the low consensus) and the usual concerns over the data being skewed by hot money inflows being masked as export revenues. Still, the commodities import side of the trade data was impressive."
"Imports of crude oil, iron ore and copper all posted record highs in volume terms for the first month of the year and clearly belies the market consensus of slowing Chinese growth. This is good news for Australia and is consistent with the December trade data from Australia that revealed strong demand from China. The good news keeps coming for the Australian dollar."