Australia Job Vacancies (QoQ) Nov: 3.5% (prev 2.7%)
PBoC Fixes Yuan Reference Rate At 6.5630 (prev 6.5628)
Yuan Overnight Interbank Rate In Hong Kong Drops To 8.31%
Oil's slide below $30 sends shockwaves far and wide- RTRS
Asia stocks cheered by China trade surprise – RTRS
Risk appetite improved after better than expected Chinese trade data. The December trade balance in USD stood at $60 billion vs $53 billion expected. This led to a rally in most of the Asian stock markets, with the Hang Seng gaining more than 2 % on the day. The Nikkei and ASX followed it higher, with only the Shanghai Composite lagging behind a bit.
In FX, the Aussie and Kiwi Dollar benefited from the improved sentiment, while the Japanese Yen fell against most currencies. AUD/USD rallied from 0.6975 at the Sydney open to a high of 0.7050. Resistance is now seen at 0.7075/80. NZD/USD rose from 0.6530 to 0.6590 and momentum faded just ahead of the key 0.66 resistance level. A clear break above would then pave the way for 0.6675 and eventually 0.6725.
USD/CAD continues to post fresh multi-year highs on a daily basis, as oil prices remain under pressure. WTI fell below $30 yesterday, the first time since 2003. It has recovered slightly since then, which led to a decline to 1.4215 in USD/CAD. Intraday support is seen at 1.4180 and then 1.4070.