Disappointing Japanese and Chinese Data Hurts GBP USD Exchange Rate, While GBP AUD and GBP NZD Could Climb

Modified: Monday, 10 September 2012 16:05 BST - Written by John Cameron

STORY LINK Disappointing Japanese and Chinese Data Hurts GBP USD Exchange Rate, While GBP AUD and GBP NZD Could Climb

The past twenty four hours have brought the release of further disappointing data from the Far East. Perhaps the most worrying figures of all emanated from the 'workshop of the world' in the form of the latest Chinese trade numbers, which revealed that the world's second largest economy exported and imported a lower volume of goods and services than analysts had been anticipating. This suggests that generalised economic activity, on both a global and regionalised scale, is contracting.

The disappointing Chinese figures were accentuated by the overnight release of the finalised version of Japan's quarter 2 GDP growth numbers, which again provided cause for concern. The headline quarter-on-quarter number was downwardly revised from initial estimates of 0.3% to 0.2%, meaning that the Far East second most significant economy is hovering perilously close to a recession. Q3's equivalent release will be closely-watched.

The net effect of the disappointing Asian numbers has been to take the edge off investors' appetite for risk during today's European session. This has manifested itself in renewed support for the safe-haven US Dollar, meaning that the GBP USD exchange rate has dipped back below the 1.6000 level following a brief excursion higher either side of the weekend which was triggered by Friday's weak US labour market data.

Up to this stage, the weak data sets have failed to cause any significant move against the high-yielding risk sensitive Australian and New Zealand Dollars. However, the move higher for the GBP AUD and GBP NZD exchange rates could come later when Asia re-opens for business. The current GBP AUD exchange rate stands at 1.5439, while GBP NZD is at 1.9717.

For live exchange rates, euro exchange from UK and a currency converter please see the Currency News main website.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Australian Dollar Forecasts Daily Currency Forecasts