Aussie Boosted, Sentiment Stabilized

Market Reviews

Aussie has been supported by Chinese trade figures. Now, the currency rose to trade as the firmest along with Loonie and Kiwi. The single currency dropped, especially versus the Pound, but reinforced against the greenback. Meanwhile, stock market sentiment became much more upbeat. Nikkei rose 0.67%. DOW was up 1.21% to 24483.05 but remained bounded under the short term resistance of 24622.3. S&P 500 was limited inside 2672.08 near term resistance. The yellow metal weakened and now it’s holding near 1340. WTI crude oil is strong around 67.

It’s been reported, that Donald Trump ordered Larry Kudlow (White House economic adviser) and Robert Lighthizer (Trade Representative) to consider all the pros of re-entering the TPP (Trans-Pacific Partnership) trade pact. This came as almost shocking news, as last year President Trump he rejected the agreement. He said he “Would only join TPP if the deal were substantially better than the deal offered to Pres. Obama. We already have BILATERAL deals with six of the eleven nations in TPP, and are working to make a deal with the biggest of those nations, Japan, who has hit us hard on trade for years!”

Chinese trade deficit marked -5 billion dollars. Imports were up 5.9% yoy. Exports fell -2.7% yoy. Trade surplus with US declined to 15.3 billion dollars. In terms of yuan trade balance marked a deficit of CNY -30 billion. Imports reduced -9.8% yoy. Exports were down -9.8% yoy. In March, China’s trade surplus indicated 49.1 billion dollars, down from -23.2% yoy from the first quarter of the last year. Exports grew 14.1% yoy. Imports increased 18.9% yoy. In CNY terms, trade surplus of the first quarter increased, marking 326.2 billion yuan. Exports rose 7.4% yoy. Imports were up 11.7% yoy. Q1 export to US lifted 14.8% yoy to 99.9 billion dollars. Imports from US increased 8.9% yoy to 41.7 billion dollars. Exports to the European Union were up 13.2% yoy to 90.2 billion dollars. Imports from the European Union grew 17.5% yoy to 63.5 billion dollars.