Chinese trade balance data has missed widely as expectations for February were a net positive for the export section with a surplus of 173B Yuan. Rather than an increase, changes were a negative 60B. The release data showed disappointing results for the second largest economy with exports only 4.2% on a yearly basis versus the expected 14.6%. Imports have increased with 44.7% on a yearly basis when only 23.1% was the expected level for this report. Despite this, the net result is still a surplus of 293.7bn CNY for the economy on a yearly basis thus far.
AUD stays predictable, FED and ECB cannot promise the same
As expected, Governor Lowe reaffirmed that the interest rate for the Australian Dollar will remain at 1.5% for now. The cited reasons are the promising economic outlook with low inflation, but still sluggish employment rate. Consumer and business confidence have grown with exports being high and mining investments picking up again. The labor and housing markets were the only concerns at the meeting.
Bulls in charge of Stocks, but for how long?
President Trump made his speech to congress and while it was rich in words, it did not give as much detail regarding his policies, as some might have hoped for.
His talk centered on immigration issues, city crime and drug abuse, with recurring themes of deregulation, big infrastructure projects like the Dakota pipeline and attacks on the The Trans-Pacific Partnership (TPP) treaty.
The USD after President Trump's speech – will it sink or swim?
The global situation and the Year's End
The US Dollar has still shown a significant improvement in its price, although it has declined in the past two weeks and the US existing Home sales fell due to high mortgage rates. However, the crude oil jumped to $54 and has now made its way to its highest peak in the past 17 months all the while the Asian stock markets remained calm. The Wall Street stocks likewise dropped with the rise in US Dollar prices.