By FXEmpire.com
Analysis and Recommendation: (close of Asian session)
The USD/CNY is up at 6.3132 as the US dollar continues to mount strength on the migration of equities and higher risk assets to the safety of the USD. Compounded by disappointing data released in China last evening and this morning, showing a continued slowdown in their economy and growth.
With weaker than expected exports and stalling headline import growth signaling that government spending is the crucial factor keeping the economy moving.
Annual growth in imports in April was just 0.3 percent, far below forecasts of an 11 percent increase, while exports managed growth of just 4.9 percent versus expectations of 8.5 percent, customs data on Thursday showed.
Shipments to emerging economies experienced a drop alongside well-flagged European weakness.
Hurt by a recession in Europe and a patchy economic recovery in the United States – China’s two biggest trading partners -export growth has slumped to single-digit levels this year, a long way from growth of more than 20 percent seen in 2010.
China’s export sector dragged on the economy in the first quarter of 2012, with net exports subtracting 0.8 percentage points from GDP, which grew at its slowest annual rate in nearly three years at 8.1 percent
Economic Reports for May 9-10, 2012 actual v. forecast
|
May 10 |
AUD |
Employment Change |
15.5K |
-5.5K |
44.0K |
|
AUD |
Unemployment Rate |
4.9% |
5.3% |
5.2% |
|
|
CNY |
Chinese Trade Balance |
18.40B |
8.50B |
5.35B |
Upcoming Economic Events that affect the AUD, NZD, JPY, CNY and USD
|
May 11 |
02:30 |
CNY |
Chinese PPI (YoY) |
-0.3% |
|
02:30 |
CNY |
Chinese CPI (MoM) |
0.2% |
|
|
06:30 |
CNY |
Chinese Fixed Asset Investment (YoY) |
20.9% |
|
|
06:30 |
CNY |
Chinese Industrial Production (YoY) |
11.9% |
|
|
06:30 |
CNY |
Chinese Retail Sales (YoY) |
15.2% |
|
|
13:30 |
USD |
Core PPI (MoM) |
0.3% |
|
|
13:30 |
USD |
PPI (MoM) |
0.0% |
|
|
14:55 |
USD |
Michigan Consumer Sentiment |
76.4 |
Government Bond Auctions (this week)
Date Time Country
May 11 09:10 Italy BOT auction
May 11 10:00 Belgium
Click here to read USD/CNY Technical Analysis.
Originally posted here
