ForexLive Asian market wrap: China’s GDP disappoints at 8.1%
- China Q1 GDP 8.1% Vs expectations of 8.4% (and rumours of 9.0%)
- China stats bureau: Inflation still an issue
- MAS tightens Singaporean monetary policy
- Bank of Korea keeps rates on hold
- North Korea launches rocket, which crashes into sea after very short flight
- BOJ March meeting minutes
- Australian Greens Party leader resigns, does not endanger minority government agreement
- Rules tighten on Chinese investment abroad
- Nikkei +1.2%; HK +1.6%; Shanghai +0.25%
- Gold $1676/oz; Oil $103.50/bbl
The overnight rumours of 9.0% Chinese GDP growth proved totally false and the AUD/USD dropped 50 pips immediately after the number, before stalling ahead of solid bids near 1.0400. These were eventually filled and further AUD/NZD stop-loss selling saw the AUD/USD post session lows below 1.0380. Ranges: 1.0378/1.0451
The NZD was the surprising mover in early trade, as buying flows against the AUD firstly, and then the JPY, drove the NZD to session highs near .8318 before it fell back also on the Chinese data.
USD/JPY edged higher early when risk sentiment was at its most positive but it fell back after the Chinese data. The North Korean rocket launch had no effect. Ranges: 80.83/81.19.
EUR/USD has been led by the regional currencies inside a 1.3163/1.3201 range. Cable 1.5935/69; EUR/CHF 1.2010/20
USD/KRW closed in NY at 1135 and after the failed North Korean rocket launch and strong early risk sentiment, it fell to 1131 before recovering after the Chinese GDP. USD/SGD fell sharply in early trade after the MAS surprise and the SGD continues to outperform on the Asian crosses. Ranges: 1131/1135.50; 1.2458/1.2524