Binary Options News : May 14, 2013
Subdued Trading on Soft Data. USD Down
There was low volume trading in Asia overnight as the release of soft data from China saw gold rise for the first time in three days and the JPY move away from its lowest level in over 4 years.
China’s stocks dropped the highest for three weeks as concerns heightened that the Chinese government is introducing more property restrictions to restrict the rises in its housing market. This comes just a day after industrial production in China increased 9.3% for April, lower than the expected 9.5% increase and follows the 8.9% increase recorded in the previous month. Separate data also revealed that retail sales in China increased by 12.8% for April, which was very much in in line with expectations. Worrying investors looking at economic growth, was the the news that oil demand slowed April, which kept gains in check.
Yesterday saw the release of retail sales data in the US with retail sales rising 0.1% in April following a decline recorded in March. The increase was boosted by a 1% increase in auto sales and clothing sales rising 1.2%. The retail sales figure,excluding petrol station sales, means that retail spending increased by 0.7%, indicating that US consumers are increasing their spending, which is important to US growth as the US economy is 70% consumer spending driven.
Asian stocks were mixed on the sluggish data released. Japan’s Nikkei 225 started with gains before reversing and was currently 0.04% down. Hong Kong’s Hang Seng also posted early gains before pulling back to be down 0.34%. The Chinese Shanghai Composite was down 0.67% on the soft data releases from China – the world’s second largest economy. Australia’s S&P/ASX 200 advanced 0.11% on central bank intervention talk before July heating up.
Following on from yesterday’s subdued trading in the currency markets, there was a bit more life and movement in overnight Asian trading with the US Dollar reversing some of the gains made over the last few days. The EUR/USD was up 0.20%, whilst the AUD/USD was up 0.49%. The USD also saw declines against the GBP – down 0.15% and against the JPY – down 0.46% as investors cashed in on recent gains and resumed some of the risk on sentiment seen at the back of last week.
The weakened USD saw some investors snap up nicely priced positions in the commodity markets. Gold and Silver both made gains with Gold rising 0.45% and Silver inching 0.05% higher. Natural Gas bounced off a 5 week low to rise 0.13% as a cold spell is forecast in the Northwest of USA and over some parts of Northern Europe. Crude Oil gained 0.32% despite the soft data from China and was priced at 95.44 a barrel.
Expect a busier trading session when European markets open with volume levels increased over what was seen in Asia overnight. A raft of important Euro data should see the EUR continue to rise, whilst the ZEW economic sentiment should be closely followed.
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