China Data & US Stimulus Supporting Risk

Risk sentiment has been supported early in the Asia-Pac session on Monday by progress on the US stimulus package and robust trade data from China. This has seen commodity currencies on the front foot while safe havens have slipped.

• AUD up around 18 pips at 0.7704, boosted by data from China that showed a widening trade surplus thanks to a 60.6% surge in exports which reflected strong global demand. Imports rose 22.2% against 16% expected which bodes well for AUD.
• JPY pairs are softer as safe haven demand wanes. Data earlier in the session showed the current account surplus narrowed to JPY 646.8bn in December against expectations of a JPY 1.25tn surplus, while the trade deficit widened to JPY 130.1bn. Bank lending including trusts rose 6.2%, after a 6.0% rise in January.
• The PBOC fixed USD/CNY at 6.4795, some 34 pips above sell side estimates, the PBOC once again resisting strength in the yuan. The aforementioned trade data has spurred yuan bulls who were only recently talking about the PBOC tightening policy. USD/CNH last down 44 pips at 6.5118.
• Elsewhere, oil is higher after Saudi Arabia said one of the most protected oil facilities in the world came under attack on Sunday, but crude production appeared to be unaffected after the barrage of missiles and drones was intercepted. This has seen CAD firm, USD/CAD last down 21 pips at 1.2638.