Chinese trade data from this morning exposed both exports and imports continuing their decline, the sixth consecutive month of year-over-year declines in exports (in USD terms). Despite sluggish trade data and gold trading marginally lower this morning, the Aussie gained against most of its counterparts in early trading thus far, as investors believe this will force the Central Bank of China to introduce additional stimulus to boost the softening economy. Oil prices this morning are trading marginally higher, following yesterday’s brief dip below $30 for WTI contracts for the first time since 2003, spurring USDCAD to break the 1.43 handle momentarily – currently trading at 1.4250 at the time of writing. Lastly, the FED’s Lacker (non-voter, hawk) stated yesterday that the US will need at least four rate hikes in 2016, though his comments had little effect on the USD. Europe will publish industrial production figures this morning, which are forecasted to contract by -0.2% month-on-month. Elsewhere, CAD traders will be closely monitoring this afternoon’s crude oil storage figures, which are anticipated to have risen by 1.9M barrels, even though yesterday’s API report showed a bullish 3.9M barrel inventory draw. Also, the US will publish its Beige Book this evening, which will come at the same time as the federal budget. Lastly, Australia will release employment data overnight, which is anticipated to show the unemployment rate ticking up to 5.9% from 5.8%, a small correction following the last two month’s stellar figures. |
