Not easy to predict this and friday Asia are rarely the place to predict reversal. We are not predicting reversal but just being overcautious on the portfolio. It is our job to warn you but having said that data may be ignored by the markets as it makes another lurch to 1356.

Chinese import data is a disastrous 15% negative YoY basis while exports too were negative by 0.5% on YoY basis where as expectation was 4.5% increase. This led to a optically impressive trade surplus of USD 27.3 billion. The current account surplus fell down to USD 60 bn. The only silver lining this morning though was Chinese central bank fixing USD/CNY rate at 6.29 which should aid further dollar sales but dont bet the farm on that.

ANZ decided to be the first off the block in Australia as they raised rates by 6bps and thus delinking from RBA policy statement. Source.

Lastly in news just buzzing the wires, India’s Industrial production number were not as expected. India’s Industrial output in December has slowed down to 1.8% versus 5.9% in November. This is significantly below expectation of 3.45%.

Markets in its momentum may still ignore but we would like to be cautious from here on for that intermediate correction.

More charts and analysis.

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