Data in the last week centered mainly on the Asia-Pacific region with important economic numbers released from China, Japan, and New Zealand. The week started out with the Chinese trade balance which saw the surplus rose by 75%. While positive on a headline basis, exports contracted at a -2.50% annualized pace while imports fell by an even steeper -17.60% year over year. Across the sea, Japan saw a major uptick in gross domestic product, with the latest figures showing 1.00% growth in the first quarter with the economy expanding at a 3.40% annualized rate. However, comments from Bank of Japan Governor Kuroda sent the Yen surging higher as members believe the Yen might has devalued too far as they seek a USDJPY target of 1.1500-1.2000. Further south, New Zealand surprisingly cut interest rates to 3.25% as the Reserve Bank of New Zealand contends with higher fuel prices while dairy prices have undergone a slump. Further monetary accommodation might be plausible if the economy continues to cool. Lastly, Greece continued to a headline generator after the IMF recalled its negotiators from Brussels and Europe put pressure on the nation to accept a deal or default. Time is running out as the creditors lose patience with Greece.
Chinese Export Powerhouse Slowing
Weekly Report - 15/06/2015