By: DailyForex.com
Safe haven currencies edged higher, especially versus the US Dollar and the Euro, after the release of disappointing data from China which reignited investors’ concerns. As the second largest global economy, Chinese growth and in term, demand for goods, weighs heavily on investors’ appetite for higher risk assets and currency pairs. According to China’s General Administration of Customs, exports fell 25.4% year-over-year with a corresponding drop of 13.8% for imports, both figures far worse than analysts’ expectations.
As reported at 10:45 am (GMT) in London, the USD/JPY was trading lower at 112.8955 Yen, down 0.43%; the pair has ranged from a low of 112.7610 Yen to a session peak of 113.5150. The EUR/JPY was also lower at 124.3160 Yen, down 0.45% with today’s trading band ranging from 124.2437 to 125.0115 Yen. The EUR/USD was just off its low at $1.1010, down 0.04%.
Kiwi and Aussie Dollars Feel the Pressure
High risk currencies were also hit hard, especially those with strong relationships to China, namely Australia and New Zealand. Both economies rely on a strong China for their goods and commodities. The AUD/USD was down 0.43% at $0.7430 while the NZD/USD was lower at $0.6744, a loss of 0.60%. There is some economic data due soon, specifically Consumer Inflation Expectations and the Consumer Confidence reading, which could provide the Aussie Dollar with a lift provided the figures are positive. For the Kiwi Dollar, FX traders are awaiting the imminent policy decision of the Reserve Bank of New Zealand to see if Graem Wheeler, the governor of the RBNZ, will offer hints as to the timing of the possible next rate cut.