RTTN:Australian, NZ Dollars Strengthen After Strong China Trade Data
The Australian and New Zealand dollars firmed against their major counterparts in the Asian session on Thursday, as better-than-expected China trade data in December boosted investor sentiment.
The National Bureau of Statistics said China saw a merchandise trade surplus of $31.6 billion in December. That blew away forecasts for a surplus of $20.0 billion, and was up from the $19.63 billion surplus in November.
Exports surged an annual 14.1 percent - shattering expectations for an increase of 5.0 percent after rising 2.9 percent in the previous month.
Imports were up 6.0 percent on year versus forecasts for an increase of 3.5 percent, following the flat reading a month earlier.
China has strong trade relations with Australia and New Zealand.
Meanwhile, the total number of building permits in Australia was up a seasonally adjusted 2.9 percent in November, standing at 13,307, the Australian Bureau of Statistics said.
That was just shy of forecasts for an increase of 3.0 percent, following the revised 5.2 percent contraction in October.
The aussie approached 92.97 against the yen for the first time since September 2008. The aussie thus advanced 0.6 percent against the yen from Wednesday's close of 92.42. If the aussie extends its gain, it may break the 94.00 level.
Against the U.S. and Canadian dollars, the aussie climbed to 3-week highs of 1.0556 and 1.0422 with 1.06 and 1.045 seen as the next upside target levels, respectively. The aussie closed yesterday's deals at 1.0516 against the greenback and 1.0389 against the loonie.
The aussie added 0.5 percent against the euro to hit a 4-week high of 1.2368 and is likely to seek next upside target level at 1.23. The pair closed yesterday's deals at 1.2430.
The aussie that closed yesterday's deals at 1.2528 against the kiwi reached 1.2566, adding 0.3 percent. The next upside target level for the aussie-kiwi pair is seen at 1.26.
The NZ dollar also gained ground, hitting more than a 4-year high of 74.07 against the yen. The kiwi may find next resistance level at 75.00. At Wednesday's close, the pair traded at 73.81.
New Zealand saw a merchandise trade deficit of NZ$700 million in November, Statistics New Zealand said today.
That missed forecasts for a shortfall of NZ$670 million, following the NZ$718 million deficit in October.
Against the European and U.S. currencies, the kiwi gained to 1.5527 and 0.8408, compared to yesterday's close of 1.5566 and 0.8398, respectively. The kiwi is likely to target next upside level at 1.545 against the euro and 0.845 against the greenback.
At 7:00 am ET, BoE interest rate decision is due. The central bank is expected to keep interest rates on hold at 0.50 percent.
The European Central Bank decision on interest rates will be released at 7:45 am ET. Analysts forecast the bank to maintain the current rates at 0.75 percent.
Canada building permits and new housing price index for November, U.S. weekly jobless claims for the week ended January 5 and wholesale inventories for November are set for release in the New York morning session.
