- Chinese economy grew by 7.3% in Q4 2014
- Chinese Dec retail sales post 11.9% annualized growth
- Chinese industrial production up by 7.9% y/y in Dec
- New Zealand NZIER business confidence index up from 19 to 23
- German and euro zone ZEW economic sentiment figures due
Today’s data dump from China led to a few good moves in the forex market, particularly among the commodity currencies. AUD/USD is down 0.40% and is trading below the .8200 handle while NZD/USD marked a 0.62% loss in the past few hours, even though the NZIER business confidence marked an improvement from 19 to 23.
As it turns out, the Chinese economy grew by 7.3% in Q4 2014, slightly higher than the projected 7.2% reading. However, this marked the slowest pace of growth since 1990 and is below the government’s 7.5% target GDP. The retail sales report also came in better than expected, as it logged in an annualized 11.9% increase for December, while the industrial production figure surprised to the upside with a 7.9% year-over-year gain.
It appears that other forex pairs were also unimpressed by these figures, as the higher-yielding currencies are looking weaker. GBP/USD is down 0.24%, USD/CAD is up 0.34%, and USD/JPY is up 0.63%.
Up ahead, the forex calendar suggests that all eyes could be on the euro pairs today, as the German and euro zone ZEW economic sentiment readings are up for release. The German ZEW is expected to climb from 34.9 to 40.1 this month while the euro zone ZEW could rise from 31.8 to 37.6, both reflecting an improvement in confidence. However, weaker than expected readings could lead to a short-term euro selloff so make sure you watch out for the actual release at 11:00 am GMT.
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