Forex news for Asia trading Wednesday, May 15 2019
The ‘activity data’ from China for April came in at a miss on all three of the major indicators:
- Industrial production
- Retail sales
- And investment
- (see bullets above)
Market response was restrained after some initial knee jerk. Regional equities here have taken their lead from gains on Wall Street Tuesday and not so much from the weaker Chinese data. In FX the AUD is on the soft side but it is little net changed from where it was prior to the data.
There is always the argument that weak data from China, especially on the scale seen here in the April data, will prompt stimulus from authorities. As an aside, today saw the first phase of RRR cuts announced last week come into effect. Perhaps this provided a cushion to the AUD. Also in the mix was data from Australia earlier that showed wage growth continues slow and adds a straw to the camels back of rate cuts. The RBA is a cranky old beast though and it’ll take a bit more than this. The monthly jobs report from Australia is due tomorrow, another straw perhaps?
Currency movement was subdued across the board. EUR/USD is barely changed on the session, as is cable. USD/JPY ditto. NZD and AUD both a touch softer.
Still to come:
AUD/JPY for the session: