- Chinese trade surplus shrank from 60.6 billion USD to 3.1 billion USD in March
- Japanese Feb core machinery orders down 0.4% vs. estimated 2.6% decline
- Producer prices up 0.7% in Japan, higher than 0.4% estimate
Dollar bulls were eager to charge in today’s Asian trading session, as the U.S. currency gapped higher against most of its forex counterparts. GBP/USD is down 35 pips (-0.25%) and USD/JPY is up 17 pips (+0.14%) while EUR/USD managed to hold on to the 1.0600 handle (+0.04%).
Commodity currencies are faring much worse so far, after China printed a dismal trade balance for March. The surplus shrank from 60.6 billion USD to a meager 3.1 billion USD figure for the month, with both imports and exports posting sharp declines. AUD/USD is facing a 73-pip loss (-0.95%) and NZD/USD is down 48 pips (-0.63%) since the report reflects lower demand for commodities.
In Japan, data was mostly stronger than expected. Core machinery orders chalked up a smaller than expected 0.4% dip instead of the projected 2.6% tumble. Producer prices logged in a 0.7% gain, higher than the estimated 0.4% increase. Because of that, the yen was able to advance to the pound and the comdolls in the past few hours.
It’s going to be a data-light London trading session since there are no top-tier reports in sight. The only news report scheduled to be released is the Italian industrial production figure, which could show a 0.5% rebound for February and possibly keep the euro afloat. Do stay on your toes for any forex market updates that might affect risk sentiment!
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