The effects of the Chinese New Year may have skewed the data somewhat contributing to the upside surprise as some of the exporters may have rushed their shipments ahead of the holidays. However, the overall data suggests that both external and internal demand remains robust and bodes well for global growth in Q1 of 2011.
The Chinese Trade Balance news, along with rumors that China's CPI due later tonight may print below the 5.3% forecast helped to lift risk appetite at the start of the week's trade with EUR/USD rising about 50 points off the Asian session lows while Aussie climbed steadily to reach 1.0070 as fears of economic slowdown in Asian Pacific region were allayed for the time being.
With little economic news on the calendar risk FX may remain rangebound for the near term with EUR/USD capped in the 1.3550-1.3500 zone while cable bounces between 1.6050-1.6100 as traders await direction from North American flows to see if there is any follow through from Friday's rally in equities.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.