China and Australian trade data and Japanese GDP were highlights of the day - BBH

Research Team at BBH, lists down the key economic releases for today which kept the investors engaged.

Key Quotes

“Japan reported final Q2 GDP data overnight.  Headline growth was revised upwards to 0.7% q/q annualized from 0.2% previously.  July current account surplus came in slightly smaller than expected at JPY1.45 trln adjusted.  Dollar/yen showed little reaction to the data, however.  The pair has traded in a 50 pip range today, and remains stuck near the 101.50 area.   

China trade data for August was slightly better than expected.  In USD terms, exports came in at -2.8% y/y vs. -4.0% expected, while imports rose 1.5% y/y vs. -5.4% expected.  USD/CNY has been remarkably steady this quarter, trading mostly in the 6.6-6.7 range.  For now, China is on the back burner.

Australia reported July trade.  In USD terms, goods exports rose 2.2% y/y and was the first positive reading since July 2014.  Goods imports still contracted slightly, however.  With firm GDP and trade data this week, markets have likely downgraded their RBA tightening expectations.  No action is seen at the next policy meeting in October.  However, next month’s Q3 CPI print will be very important.”