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Asian forex market wrap: Chinese GDP adds some life to otherwise dull session

  • Chinese Q4 GDP came in close to expectations at 10.7%
  • Chinese CPI was +1.9%
  • Australian new car sales were +3.3% in December
  • NZ retail sales +0.8% s 0.5% expectations
  • China to continue with moderately loose monetary policy: PBOC

It has been a very quiet session either side of the Chinese economic data release but there were again some very short sharp moves.

EUR/USD closed in NY around 1.4090 and drifted higher through the morning as dealers tried to trigger stops above 1.4135. This attempt failed and when the GDP numbers came in as expected, the market was caught long and fell very sharply to a session low at 1.4068.

AUD/USD has held up remarkably well during today's session and didn't suffer the same volatility as the EUR. More strong data in the form of new car sales. As the market quietens down and reassesses the GDP data, it may well decide that the time is ripe to buy the AUD again. Range .9097/.9140

Cable has been fairly heavy all day and broke though the overnight 1.6255 low, albeit not convincingly. EUR/GBP has made a light rebound. Range: 1.6250/1.6311

USD/JPY is starting to show some signs of life again and has moved steadily higher today in a 91.20/66 range.

Markets: Nikkei +0.9%, HK -0.5%, Kospi +0.2%. Gold steady at $1113/oz.