By FXEmpire.com
USD/CNY Fundamental Analysis April 17, 2012 Forecast
Analysis and Recommendation: (close of Asian session)
The USD/CNY has climbed in today’s trading to 6.3129 moving off the low of 6.2987 as the USD picked up momentum. Continued worries over the slowdown in China and growing debt in Spain and Italy, investors continued to move to safety. Although the numbers in the US have been mixed and confusing, there is no doubt that the economy is improving. The worries about China, are the longer term effects of the continued economic problems in Europe.
The currency fluctuation may also be a result of the new flexibility of the Chinese currency.
The Chinese government announced on Saturday that it would allow the renminbi to vary more in value against the dollar during each day’s trading, but gave no hint that it would accept the Obama administration’s demands to allow the currency to show a longer-term trend of appreciation against the dollar.
Economic Data Released on April 13, 2012 actual v. forecast
|
JPY |
Monetary Policy Meeting Minutes |
|||
|
KRW |
South Korean Interest Rate Decision |
3.25% |
3.25% |
3.25% |
|
CNY |
Chinese Fixed Asset Investment (YoY) |
20.9% |
20.8% |
21.5% |
|
CNY |
Chinese GDP (YoY) |
8.1% |
8.3% |
8.9% |
|
CNY |
Chinese Industrial Production (YoY) |
11.9% |
11.5% |
11.4% |
|
CNY |
Chinese Retail Sales (YoY) |
15.2% |
15.0% |
14.7% |
|
EUR |
German CPI (MoM) |
0.3% |
0.3% |
0.3% |
|
EUR |
Finnish CPI (YoY) |
2.90% |
3.10% |
|
|
GBP |
PPI Input (MoM) |
1.9% |
1.2% |
2.5% |
|
BRL |
Brazilian Retail Sales (YoY) |
9.6% |
9.0% |
7.3% |
|
PLN |
Polish CPI (YoY) |
3.9% |
3.9% |
4.3% |
|
USD |
Core CPI (MoM) |
0.2% |
0.2% |
0.1% |
|
USD |
CPI (MoM) |
0.3% |
0.3% |
0.4% |
|
USD |
Michigan Consumer Sentiment Index |
75.7 |
76.2 |
76.2 |
|
USD |
Fed Chairman Bernanke Speaks |
Economic Events scheduled for April 17, 2012 that affect the NZD, AUD, and JPY
05:30 JPY Industrial Production (MoM) -1.2%
Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
13:30 USD Building Permits 0.71M 0.71M
Building Permits measures the change in the number of new building permits issued by the government. Building permits are a key indicator of demand in the housing market.
13:30 USD Housing Starts 0.70M 0.70M
Housing starts measures the change in the annualized number of new residential buildings that began construction during the reported month. It is a leading indicator of strength in the housing sector.
14:15 USD Industrial Production (MoM) 0.5%
Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
Government Bond Auctions (this week)
Apr 17 08:30 Spain 12 & 18M T-bill auction
Apr 17 09:30 Belgium Auctions 3 & 12M T-bills
Apr 18 09:10 Sweden Nominal bond auction
Apr 18 09:30 Germany Eur 5.0bn 0.25% Mar 2014 Schatz
Apr 18 14:30 Sweden Details T-bill auction on Apr 25
Apr 19 08:30 Spain Obligacion auction
Apr 19 08:50 France BTAN auction
Apr 19 09:30 UK Auctions 0.125% I/L Gilt 2029
Apr 19 09:50 France OATi auction
Originally posted here
