China Data Whets Risk-On Trade

Safe haven appetite fell earlier today on the news that China’s economy grew in Q4 of 2015 (on an annual basis) which met analysts’ expectations. According to the China’s National Bureau of Statistics, growth slowed to 6.8% from the previous year’s 6.9%. Growth on a quarterly basis was weaker than expected, however, falling to 1.6% pace from 1.8%, slightly below forecasts. Analysts still expect that there will be more easing efforts ahead from the People’s Bank of China. However, the news did help whet traders’ appetite for higher-risk currencies such as the Aussie and Kiwi Dollars.

As reported at 10:56 am (GMT) in London, the AUD/USD was trading higher at $0.6939, a gain of 1.07%; the pair has ranged from $0.6839 to $0.6949 in today’s trade. The NZD/USD was also higher at $0.6499, a gain of 0.72%; in today’s trading the pair hit a low of $0.6417 and a high of $0.6507. The safe haven Yen edged lower; the USD/JPY pair was trading at 117.9650 Yen, up 0.47% for the greenback.

Pound Sterling Finds Support

In the UK, the Pound Sterling got some broad support after the release of a slew of economic data, primarily inflation-related, which met or exceeded expectations. The GBP/USD pair was 0.45% higher at $1.4317 while the EUR/GBP was lower at 0.7590 Pence, a loss of 0.66% for the Euro. Analysts said that a weak reading could compel the Bank of England to further weaken the Pound Sterling, but this outcome gives Mark Carney and the BoE some breathing room.