Global Themes

CNY at nine-month highs

Chinese March-quarter GDP, reported at 6.4%, was slightly above expectations, but a big jump in retail sales and industrial production signalled the Chinese government’s stimulus programs were providing a boost to growth.

The Chinese yuan was boosted by the Chinese data and USDCNY is now at the

lowest level since July.

An improvement in Chinese data and the belief the Chinese government is trying to ease tensions with the US is helping the CNY.

USD falls

The US dollar was weaker as markets saw the Chinese news as a reason to move away from the safe haven currencies.

The AUD was initially higher but unable to hang on to the post-Chinese data gains overnight with the two-month highs continuing to provide major resistance.

This level has provided trouble for the Aussie’s recent gains with markets still concerned about the potential for a Reserve Bank of Australia rate cut.

Aussie jobs, US retail

Australian jobs are in focus today. There’s a growing risk of a miss in today’s jobs report with last month’s employment report missing expectations for the first time since October and the ANZ job ads dropping sharply over the last few months.

The market is looking for 12k new jobs with the unemployment rate expected to climb from 4.9% to 5.0%.

Later, US retail sales will be key for the US dollar. With some data recently weaker, an up-to-date reading of the US consumer will be critical.

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