Currency Updates:
U.S. Dollar Trading (USD) risk was off the table on Friday in Asian trade as the China GDP reversed the positive momentum for a second day of gains from US markets overnight. The Q1 GDP came in at 8.1% vs. 8.3% forecast and rumours of 9.0% overnight. The big data miss was played out best through the AUD/USD which fell over 60 pips immediately after the result. Looking ahead, April UoM Consumer Sentiment forecast 76.2 vs. 76.2 previously. Also Federal Reserve Chairman Ben Bernanke Speaks
The Euro (EUR) The EUR/USD broke above the 1.3150 and then onto 1.3200 in the US session as the positive stock market and sentiment supported. The reversal from the China data in Asia so far has only brought the major back to 1.3160 and we are watching carefully the European and US reaction tonight.
The Sterling (GBP) EUR/GBP tried but failed to break on the downside and the GBP/USD moved higher but still under 1.6000 while we wait for further stimulus. The GBP/JPY is getting a lot of attention with some looking to buy below the Y130 level for a potential rally higher. Looking ahead, March PPI Output forecast at 0.2% vs. 0.5% previously m/m.
The Japanese Yen (JPY) the USD/JPY edged slightly higher and then spiked higher in Early Asia on reports that North Korea had launched a missile. The missile failure and then the China GDP miss sent the crosses sharply lower dragging the major back under Y81.
Australian Dollar (AUD) had a very volatile 24 hours surging on strong March Jobs data and hitting week highs above 1.0450 before the Chinese data shock. The commodity currency then fell sharply lower. The Chances of a return to the downtrend are very real now the China slowdown has been confirmed.
Oil & Gold (XAU) Gold continued higher this time on USD weakness but traders have to be careful with each gain leading to a pullback before new buyers emerge.Oil Pushed towards $104 but failed to break the level and came under pressure in Asia after the Chinese data miss.
