Chinese Trade Data underpins Asia FX

Oct 13 (Reuters) – Rosy Chinese data and the soft dollar lifted emerging Asian currencies on Friday, except for the Singapore dollar which dipped on the central bank’s cautious outlook for the economy.

China’s yuan perked up to its highest in three weeks and was headed for weekly gains, helped by weakness in the dollar and encouraging trade data.

Imports in dollar-denominated terms grew 18.7 percent in September from a year earlier, beating analysts’ forecasts for a 13.5 percent expansion and accelerating from 13.3 percent in August.

The gain was stronger than the most optimistic forecast in a Reuters poll of analysts.

The trade data also showed China’s iron ore imports vaulted to a record high in September as the world’s top steel producer imported ore to raise production ahead of the winter crackdown on air pollution.

“China trade data seems to be making the big risk appeal in the region and it seems to be the overriding factor today,” said Stephen Innes, senior trader at FX broker OANDA.

 

Nasdaq Via Reuters

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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