Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Markets Cheer China Data But Fed Comments May Sour Sentiment

Markets Cheer China Data But Fed Comments May Sour Sentiment

Talking Points:

  • Upbeat China Trade Data Amplifies Sentiment Rebound in Overnight Trade
  • Fed Comments May Fuel US Dollar Gains, Trigger Renewed Risk Aversion
  • Gauge Trends and Spot Reversals in Leading Currencies with DailyFX SSI

The sentiment-linked Australian and New Zealand Dollars outperformed while funding currencies like the Euro, Franc and Japanese Yen traded lower as risk appetite firmed in Asian trade. The move appeared to reflect carry-over from an upbeat day on Wall Street, where benchmark S&P 500 index posted the largest gain in nine sessions.

The chipper mood was bolstered by an upbeat set of Chinese trade figures. In Yuan terms, exports unexpectedly grew 2.3 percent year-on-year in December. Economists forecast a 4.1 percent decline ahead of the release. Cross-border sales fell in US Dollar terms, but the reported drop of 1.4 percent was far smaller than the 8 percent drawdown projected by analysts.

Looking ahead, another round of commentary from Federal Reserve officials is in focus. Chicago and Boston Fed Presidents Charles Evans and Eric Rosengren will comment on the outlook for growth and monetary policy. Evans represented the dovish end of the voting bloc on the 2015 FOMC, a role he hands of to Rosengren this year.

With that in mind, their comments may serve as a baseline for the rest of the committee. Indeed, if Evans and Rosengren foresee 3-4 rate hikes in 2016, this seems to imply the average Fed view is significantly more hawkish than prevailing market bets. Such a scenario is likely to prove broadly supportive for the US Dollar and but may rekindle risk aversion. An upbeat tone in the Fed’s Beige Book survey of regional economic conditions may amplify this dynamic.

Losing Money Trading Forex? This Might Be Why.

Asia Session

23:00NZDQV House Prices (YoY) (DEC)14.2%-15.0%
23:50JPYMoney Stock M2 (YoY) (DEC)3.0%3.3%3.3%
23:50JPYMoney Stock M3 (YoY) (DEC)2.5%2.7%2.7%
00:30AUDJob vacancies (NOV)3.5%-3.5%
02:00CNHTrade Balance (CNY) (DEC)382.05B338.80B343.10B
02:00CNHExports (CNY) (YoY) (DEC)2.3%-4.1%-3.7%
02:00CNHImports (CNY) (YoY) (DEC)-4.0%-7.9%-5.6%
02:55CNHTrade Balance ($) (DEC)60.09B51.3B54.1B
02:55CNHExports ($) (YoY) (DEC)-1.4%-8%-6.8%
02:55CNHImports ($) (YoY) (DEC)-7.6%-11%-8.7%
04:30JPYBankruptcies (YoY) (DEC)1.89%--3.39%

European Session

10:00EUREurozone Industrial Production (MoM) (NOV)-0.3%0.6%Medium
10:00EUREurozone Industrial Production (YoY) (NOV)1.3%1.9%Medium
11:00EURECB's Lautenschlaeger Speaks in Frankfurt --Low

Critical Levels

CCYSupp 3Supp 2Supp 1Pivot PointRes 1Res 2Res 3

--- Written by Ilya Spivak, Currency Strategist for

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.