Firm China data underpins CNY, AUD rally......>

FOREX: Firm China data underpins CNY, AUD rally

-Chinese GDP data for Q1 generally fared better than expected, with Y/Y growth

edging 0.1 percentage points above forecast to 6.4%. This underpinned a firm

rally in CNY and CNH, prompting USD/CNH to make a firm test on the 2019 lows at

6.6704. This fed through to AUD strength, tipping AUD/USD above the 200-dma for

the first time since late January, but a close above the mark would be the first

since March last year.

-NZD failed to benefit from the antipodean rally as CPI figures for Q1 came in

well below expectations. Q1 CPI rose just 0.1% vs. Exp. 0.3%, pushing market

expectations of the RBNZ cash rate curve lower still. NZD/USD broke to the

lowest levels since the early January currency flash crash on upon release,

briefly touching $0.6668 before recovering slightly.

-Focus turns to Canadian and US trade balance data, Canadian CPI and the Fed's

Beige Book. Speeches are due from BoE's Carney, ECB's Villeroy & Lautenschlaeger

and Fed's Harker & Bullard. Earnings from BNY Mellon, Morgan Stanley and PepsiCo

will also be eyed.