China trade data spooks Asia, German trade balance, EZ GDP – Up next

By FXStreet FXStreet (Mumbai) – The safe haven assets such as yen, euro, gold, Swiss franc etc. were caught by fresh bid waves as the latest Chinese trade figures added to the persisting negative sentiment surrounding China’s economy, dampening investors’ sentiment.

Key headlines in Asia

Australia: Aug business confidence deteriorates, conditions edge up

China Aug trade surplus up, imports collapse

China: Yuan likely to strengthen, no sizable devaluation on cards – Macquarie

Dominating themes in Asia – centered on JPY, AUD, NZD

A volatile Asian session with Chinese equities extending their sell-off from Monday as a renewed wave of risk-aversion caught the markets following the release of weak Chinese trade figures.

The Japanese yen erased losses and swung higher versus the US dollar as risk-off sentiment gained momentum amid falling Chinese stocks post the dismal Chinese economic news which revealed that although the country’s surplus widened, the exports and imports remained weak. USD/JPY dropped sharply lower below 119 handle.

While the Antipodeans seem to be unaffected by the ongoing risk-off trades as the Australian dollar remains lifted on the back of improved business conditions. National Australia Bank’s (NAB) Business Conditions Index surged from 6 in July to 11 last month, the strongest reading since October, where …read more

Source:: FX Street