ASIA WRAP: Sluggish China Trade Numbers


*Chinese imports and exports disappoint
*ACCC investigate why Big 4 Aussie banks didn't pass through rate cuts
*Gold dips as risk appetite holds
 



FX:

  • FX markets were quieter than usual with liquidity light from US, Japan and Canada taking a bank holiday. The US Dollar was slightly up +0.1% as markets await more trade news. 
  • NZDUSD -0.4% stood out as the biggest G10 mover with high sensitivity to a poor Chinese trade print. Imports -6.2%; est. -2.3%. Exports -0.7%; est. 1.5%. 
  • AUDUSD -0.06% was largely unchanged. 
  • USDJPY -0.08% edged lower. The pair has tested 108.46 three times now in the last two months and could be seeing a triple top. 
  • USDCAD +0.11% trades around 1.321 having heavily sold-off on Friday's strong Canadian jobs report.
  • GBPUSD -0.33% chopped around a bit. 
  • USDCNH -0.4% finds relief from Friday's "partial trade deal". 
  • Elsewhere, EMs are benefitting from the trade truce. USDZAR -0.45%. USDTWD -0.2%. 

Equities:

  • Equities were buoyed as expected by the trade news delivered on Friday.
  • ASX Futures +0.6% finished  higher. 
  • ASX Cash +0.54% jumped 55pts at open but faded late. E&P oil and gas stock Santos (STO.AX) charged to a +5.6% gain on pre-open news that ConocoPhillips would sell its Northern Australian assets to Santos for $1.4bn. 
  • S&P +0.1% edged higher.
  • Nikkein Futures +1.1% rallied strongly.
  • CSI 300 +1.2% saw strong gains.

Fixed Income:

  • Yields have ticked slightly lower over the session after a solid run-up late last week. 
  • US 10y yields -2bps. 
  • AUS 10y yields -3bps.

Commodities:

  • Brent Crude Futures -0.6% retreats from the 60 handle driven by a slightly stronger USD. 
  • Gold spot -0.15% falls on firmer risk appetite. 



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