Asian markets are mildly lower following the release of a batch of Chinese data. The Japanese Nikkei, Hong Kong HSI, Shanghai SSE and Singapore Strait Times are all trading in negative territory at the time of writing. Nonetheless, losses so far very limited. Risk aversion lifts the Japanese yen generally higher. Technically, the USD/JPY is finally moving away from the 4 hours 55 EMA. The EUR/JPY has taken out recent support at 140.49. The AUD/JPY also breached recent support at 91.05. We'd possibly see more downside in yen crosses ahead.
China's GDP grew 7.7% yoy in Q4, a touch lower than Q3's 7.8% yoy but beat expectation of 7.6% yoy. Across all of 2013, GDP few 7.7%, at the same rate as 2012 and was a little stronger than the government's 7.5% target. The high level numbers are confirming that the Chinese economy is still growing with strength. Also released from China, industrial production grew 9.7% yoy in December, slowed from November's 10.0% yoy and below expectation of 9.8% yoy. That was primarily due to fading of the mid year stimulus, slower credit and fixed investment growth. Economists expect industrial output growth further in 2014 and could possibly hit the 9% mark. Retail sales rose 13.6% yoy in December, slightly below November's 13.7% but met expectation. Urban fixed investment rose 19.6% yoy in December, slowed from November's 19.9%.
Elsewhere, Australia TD securities inflation expectation rose 0.7% mom in December. UK rightmove house prices rose 1.0% mom in January. German PPI will be a main release today while US markets are on holiday for Martin Luther King Jr Day.
Looking ahead, it's a bit week for commodity currencies. Canadian dollar has been rather weak on recent economic data and will face the test from BoC rate decision, retail sales and CPI; Australia and New Zealand will release CPI too. Meanwhile, UK will release BoE minutes and job data and that would decide whether Sterling would extend its gain against euro.
Here are some of the highlights:
- Tuesday: New Zealand CPI; German ZEW; Canada manufacturing sales
- Wednesday: Australia CPI; BoJ rate decision; BoE minutes, job data; Swiss ZEW; BoC rate decision
- Thursday: China HSBC PMI; eurozone PMIs; Canada retail sales; US jobless claims, existing home sales
- Friday: Canada CPI