FXEmpire | April 17 2012 2:45 EDT
Analysis and Recommendation: (close of Asian session)
The USD/CNY is trading at 6.3029 slightly down as the USD weakened towards the end of the US trading session on lackluster results in two economic leading indicators. Investors continue to question the strength of the US recovery. Earlier, retail sales were reported well above forecast as markets shot upwards.
CNY has fallen 0.2% vs the USD in its first trading session since the widening of the trading band from 0.5% to 1.0%. Chinese policymakers last widened the band, from 0.3% to 0.5%, in May 2007 at a time when the yuan was considered to be undervalued vs the USD.Since then, CNY has appreciated against the USD by 20.3% and Chinas trade surpluses have declined in both absolute and relative terms (as a % of GDP).
Economic Reports for April 16-17, 2012 actual v. forecast
Core Retail Sales (MoM)
Foreign Securities Purchases
Retail Sales (MoM)
NY Empire State Manufacturing Index
TIC Net Long-Term Transactions
Monetary Policy Meeting Minutes
Industrial Production (MoM)
Indian Interest Rate Decision
Economic Events scheduled for April 18, 2012 that affect the NZD, AUD, and JPY
00:30:00 AUD Conference Board Australia Leading Index 1.10%
The Conference Board Australia leading Index released by theConference Boardmeasures future trends of the overall economic activity including employment, average manufacturing workweek, initial claims, permits for new housing construction, stock prices and yield curve. It forecasts short to mid-term growth in the Australian economy. Generally, a high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).
22:45:00 NZD Consumer Price Index (QoQ) 0.60% -0.30%
Consumer Price Index released by theStatistics New Zealandis a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services . The purchase power of NZD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. A high reading is seen as positive (or bullish) for the NZD, while a low reading is seen as negative.
23:50:00 JPY Merchandise Trade Balance Total -220.0B 32.9B
The Merchandise Trade Balance Total released by theMinistry of Financeis a measure of balance amount between import and export. A positive value shows a trade surplus while a negative value shows a trade deficit. Japan is so much dependant on exports that the Japanese economy heavily relies on a trade surplus. Therefore, any variation in the figures influences the domestic economy. If a steady demand in exchange for Japanese exports is seen, that
Government Bond Auctions (this week)
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