Forex Asia Review – Australian dollar weakens after China reports large trade deficit

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Euro dipped from Friday’s close against the dollar in the Asian trading session, after reports over the weekend showed China’s economy slowed in February and posted a massive trade deficit.  China’s $31.5 billion trade deficit, more than the $5 billion deficit forecast, dampened sentiment in the region. EURUSD opened in Asia at 1.3110 and fell to 1.3077.

The Australian dollar suffered losses against its U.S. counterpart as it was weighed down by uncertainty over Chinese growth, following from the weak trade data. China is Australia’s major export markets and is sensitive to data from there. AUDUSD opened the session at 1.0564 and declined to a low of 1.0516.

Yen gained back some losses from Friday, against the dollar which surged to an eleven-month high after a stronger than expected U.S. non-farm payroll report. Profit -taking in the USDJPY and slight caution against risk this morning after the China data, pressured the dollar and lifted yen. USDJPY opened in Asia at 82.50 and edged to lows of 82.10. EURJPY fell to a low of 107.50 from108.18.

Dollar performed better against the Swiss franc, still enjoying strength following a good U.S. non-farm payrolls number from Friday. USDCHF climbed to 0.9217 from 0.9193.

GBPUSD lacked clear direction and traded sideways in a range of 1.5655 and 1.5673.

Crude oil prices opened lower at $107.21 and slid down to $106.54 in reaction to the weak Chinese data, and concerns that slower growth will lessen oil demand.