January 17, 2023 02:14 GMT
USD Softens On China Data Beats, But Not Much Follow Through
Higher beta FX has nudged higher post the China data beats, but there hasn't been much follow through. China Q4 GDP was flat, versus market expectations of a contraction, while monthly indicators were also better than expected for Dec. IP rose by 1.3% y/y (versus 0.1% expected), while retail sales fell by -1.8% y/y (-9.0% forecast).
- AUD/USD got close to 0.6980, versus 0.6965 pre data. It remains the best performer within the G10 space so far today (+0.30%). NZD is playing catch up though, last near 0.6400.
- USD/JPY has drifted a touch lwoer, but remains up for the session, last near 128.70.
- USD/CNH is back sub 6.7500, we got close to 6.7600 pre the data. 1 month USD/KRW is back to the 1236 region, against 1239/40 prior to the data prints.
- The BBDXY is back softer for the session, last around 1226.30.