FXStreet (Delhi) – Derek Halpenny, European Head of GMR at MUFG, notes that the USD/Asia is certainly higher today in part of course due to the NFP data response but also in response to the data over the weekend showing continued weakness in China exports.
Key Quotes
“The fall in the annual export rate was expected to ease from -3.7% to -3.2% but in fact worsened to -6.9%. The plunge in annual import growth was again larger than the export plunge and larger than expected at -18.8% and indicates the continued weakness in economic growth in China.”
“The fallout for AUD and NZD has been very limited this morning and does suggest the scale of declines for these currencies on terms of trade concerns may be now well priced. Iron ore prices continue to fall though, and are now down nearly 15% over the last month and hence downside risks remain.”
“We have the jobs data released on Thursday and the data is expected to show some rebound in jobs growth – any disappointment there could quickly see RBA policy easing speculation rise again and that would no doubt spark renewed AUD selling. Despite today’s stability in the wake of the China data, we still see further declines from here.”
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