Published at 03:52 (GMT) 10 Nov
Reuters: Annual growth in China's exports and imports slowed in October, data showed on Saturday, reinforcing signs of fragility in the world's second-largest economy that could prompt policymakers to roll out more stimulus measures. Exports rose 11.6 percent in October from a year earlier, slowing from a 15.3 percent jump in September, the General Administration of Customs said. The figure was slightly above market expectations in a Reuters poll of a 10.6 percent rise. A decline in China's leading index on exports in October pointed to weaker export growth in the next two to three months, the administration said. China's external trade environment may slightly improve in 2015 but still faced uncertainties, the Ministry of Commerce said in a report published on Saturday. "It's difficult for external demand to show a significant rebound," the ministry said.
USD/CNY fixed massively lower at 6.1377 for the day, the lowest since June 2010. While many would point towards poorer NFP data for the lower number, we believe that the APEC summit over the weekend had a part to play as well, with the PBoC having a history of fixing USD/CNY lower during international summits. Although 1Y NDFs fell to 6.2525 from 6.2670 after the fixing, it appears that the move is already factored in in the onshore spot market, with prices seen between 6.1139 - 80. Although it would not be too late to adopt shorts in 1Y NDFs, we would advise waiting till the clutch of China data is released, with aggregate financing and retail sales/industrial production due later in the week.
Recommended Content
Editors’ Picks
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price lacks firm intraday direction, holds steady above $2,300 ahead of US data
Gold price remains confined in a narrow band for the second straight day on Thursday. Reduced Fed rate cut bets and a positive risk tone cap the upside for the commodity. Traders now await key US macro data before positioning for the near-term trajectory.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.