The week in Asia came to a close with greater optimism for a the global economic recovery as a slew of Chinese data came in better than expected, adding to dollar woes as it hit new lows for 2009 late in the day.
Traders were optimistic and bought into risk after Chinese Industrial Production, CPI, Trade Balance and Retail Sales all came in stronger than forecasts, adding fuel to the fire that this crisis could be breathing its last breaths. Markets were lethargic early in the session, presumably awaiting the Chinese data that would come later in the day. Once the data was released, the selling of dollars and yen began.
EUR/USD broke out of its 15 pip range and surged from 1.4575 to just near 1.4620, levels not seen in this pair since December of 2008. NZD/USD also posted a high not seen since late August of 2008 as the pair drove from 0.7015 to threaten the 0.7050 levels.
1.6730 was good enough for a one month high for the GBP/USD and USD/CHF hit an over one year low near 1.0360. The continued plight of the greenback does not look to turn around anytime soon if today is any indication.
As far as the Yen goes, it too was a victor over the dollar, as USD/JPY hit a seven month low near 91.15 as talk of firm support at the 91.00 level dampened the move. USD/JPY selling helped to soften the crosses, negating any moves triggered by risk buying as the moves today seemed purely dollar based. It will be interesting to see if next week will continue the pain for the US Dollar...Have a nice weekend.
Upcoming Economic Data Releases (London Session) prior expected
| 9/11/2009 | 6:00 | GE | Wholesale Price Index (MoM) | AUG | -0.50% | - - |
| 9/11/2009 | 6:00 | GE | Wholesale price Index (YoY) | AUG | -10.60% | - - |
| 9/11/2009 | 8:00 | EC | ECB Publishes Sep. Monthly Report (Text) | 11-Sep | ||
| 9/11/2009 | 8:30 | UK | PPI Input NSA (MoM) | AUG | -1.40% | 1.00% |
| 9/11/2009 | 8:30 | UK | PPI Input NSA (YoY) | AUG | -12.20% | -8.40% |
| 9/11/2009 | 8:30 | UK | PPI Output n.s.a. (MoM) | AUG | 0.30% | 0.30% |
| 9/11/2009 | 8:30 | UK | PPI Output n.s.a. (YoY) | AUG | -1.30% | -0.50% |
| 9/11/2009 | 8:30 | UK | PPI Output Core NSA (MoM) | AUG | 0.50% | 0.20% |
| 9/11/2009 | 8:30 | UK | PPI Output Core NSA (YoY) | AUG | 0.20% | 0.80% |
