Soft open on China GDP miss

April 13, 2012 - PRLog -- Yesterday much noise was made of the potential for Chinese GDP figures to come in well above expectations, but as is often the case, the rumours were just that. GDP came in at 8.1% vs the expected 8.4%. Helping to soften the blow was industrial production coming in at 11.9%, above estimates.

There is a sense of profit taking in today's early trading as traders book profits made yesterday, especially on the high flying Australian dollar. The AUD/USD is down 0.49%, with the AUD/JPY down 0.37%.  Away from the Aussie, markets are generally quiet, with the US dollar index clawing back some of the ground lost yesterday. The EUR/USD is down 0.14% in early trading.

Coming up today we have UK PPI input at 09.30 with a drop to 1.2% expected. US CPI follows at 13.30 with preliminary University of Michigan Consumer sentiment numbers released at 14.55. Analysts will be looking for a slight increase in sentiment. Finally Fed Chairman Bernanke leads us into the weekend with his speech at 18.00.

The USD/CAD plunged yesterday, a large move by the tight standards of this closely correlated pair. After such a big move, the bias is for the USD/ CAD to trade back in the other direction. This is already happening so far this morning, but this is room for further upside.

A good way to play this on BetOnMarkets might be a HIGHER trade predicting that the USD/CAD closes above 0.9975 in 3 days time for a potential return of 143% if successful.

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Name: Mike Wright

Address:
Regent Markets (IOM) Limited
3rd Floor, 1-5 Church Street,
Douglas, Isle of Man IM1 2AG,
British Isles.

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