NZD/USD gets lift from neutral Yuan again

FXStreet (Guatemala) - NZD/USD has been better bid with the yuan another neutral fix for a fourth consecutive day. this is offering risk an opportunity through the cracks and the bird is extending the recovery for this week.

Meanwhile we await the trade balance from China. As mentioned earlier, "manufacturing sector has been an area of contraction in the economy of China and exports are unlikely to be recovering with such little output and, despite the Yuan's depreciation. On the other hand, Imports could have suffered on the Chinese currency."

Should the data surprise and be positive then the bird should extend the recovery to test the 100 SMA on the hourly at 0.6580. The next resistance along comes as 0.6665 and the 200 SMA on the same time frame.

USD/JPY guns through 118.00, topside sticky

USD/JPY is breaking above the 118.00 mark following another stable fix by the PBOC, which set today's USD/CNY fix at 6.5630 vs last close 6.5756, resulting in another positive input for a potential recovery of risk, which led to JPY selling.
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Risky assets cheer up China trade figures

China December trade balance came at a surplus of 382.05 bn yuan vs 338.8bn expected, with exports YoY at +2.3% vs -4.1% expected and -3.7% last, while imports YoY saw -4% vs -7.9% expected and -5.6% last. The data is yet another encouraging sign that should underpin riskier assets, including AUD, NZD, equities, while the Yen and the Euro (funding currencies) should come under increased pressure.
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