Asian Session Recap – May 13, 2014

  • Nikkei chalks up 1.95% gain
  • Chinese industrial production up by 8.7% as expected
  • Chinese retail sales post 11.9% annualized increase vs. 12.2% expected
  • Chinese fixed asset investment up by 17.3% vs. estimated 17.7% rise
  • Australian house prices up by 1.7% in Q1
  • Australian home loans down by 0.9% in March

Hello, volatility! Aussie pairs were on the move in today’s Asian trading session, thanks to a flurry of data from China and the Land Down Under. Chinese data came in mostly weaker than expected, as retail sales and fixed asset investment both missed estimates. Retail sales showed an 11.9% annualized increase versus the estimated 12.2% rise while fixed asset investment ticked up by 17.3% instead of the projected 17.7% climb. The only Chinese report that came in line with expectations was the industrial production figure, which showed an 8.7% increase.

As for Australia, house prices reportedly increased by 1.7% in the first quarter of the year, weaker compared to the estimated 3.0% growth. Home loans also reflected housing sector weakness, as the data showed a 0.9% decline for March instead of the projected 0.1% dip.

Watch out for the release of Germany’s ZEW economic sentiment index, which is slated to dip from 43.2 to 41.3 this month and reflect stronger pessimism in the country. For the euro region though, the ZEW economic sentiment index is expected to climb from 61.2 to 63.5, but a weaker than expected reading might lead to a deeper euro selloff.

No other major reports are due in today’s London trading session, but do watch out for the speech by UK MPC member Cunliffe as this could provide a preview for tomorrow’s BOE inflation report release.

U.S. Session Recap

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