China Pulls Trigger on RRR Cut, Should Help AUD & NZD @ Forex Factory

China Pulls Trigger on RRR Cut, Should Help AUD & NZD

From fxtimes.com

Over the weekend, we have a 3rd major central bank deciding to undertake easing measures as People’s Bank of China cut its bank reserve ratio requirement (RRR) by 50 basis points bring the rate down to 20.5%. That follows fresh quantitative easing measure by the Bank of England and Bank of Japan in the last 2 weeks. The recent macro data from China shows 3 important developments. Recent Data Points to Poor Trade, But Higher Inflation One is that trade continues to show signs of struggle in China, with the latest trade balance report showing export growth declining year-over-year. While imports ... (full story)

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- Feb 18, 2012 11:59pm
- #1
- Quote
- krunfx
  
  1,566 posts
- should be.....watching market open's PA tomorow >_< should be.....watching market open's PA tomorow >_<
- Feb 19, 2012 12:42am
- #2
- Quote
- fxtimes
  
  1,580 posts
- good trading to you krunfx! Hopefully headlines out of Greece/Europe don't derail this risk-on event.. We'll see! good trading to you krunfx! Hopefully headlines out of Greece/Europe don't derail this risk-on event.. We'll see!
- Feb 19, 2012 12:53am
- #3
- Quote
- sidhujag
  
  3,745 posts
- yes qe is good but what about all the fake pumped up data out of China? pump n dump? also hard landing talks again. But yes med to long turn im still aud nzd
  bullish yes qe is good but what about all the fake pumped up data out of China? pump n dump? also hard landing talks again. But yes med to long turn im still aud nzd bullish
- Feb 19, 2012 8:05am
- #4
- Quote
- Follow_Rules
  
  8 posts
- What it means is China economy is slowing. Cranking up credit may not help if external demand is not there.
  
  Watch out for knee jerk reaction followed by crash. Good trading opportunity What it means is China economy is slowing. Cranking up credit may not help if external demand is not there. Watch out for knee jerk reaction followed by crash. Good trading opportunity
- Feb 19, 2012 8:18am
- #5
- Quote
- Guest
  
  IP XX.XXX.145.148
- I would say it should help euro at first place. AUD and NZD are extremely overbought and may not stengthen further (from Tuesday). Euro is a different case. What we know for sure is the greenback is to fall on this news. So staying bullish on audusd and nzdusd may not be as wise as to jump into EURUSD LONG (or even GBPUSD LONG) with a big chunk of money. I would say it should help euro at first place. AUD and NZD are extremely overbought and may not stengthen further (from Tuesday). Euro is a different case. What we know for sure is the greenback is to fall on this news. So staying bullish on audusd and nzdusd may not be as wise as to jump into EURUSD LONG (or even GBPUSD LONG) with a big chunk of money.
- Feb 19, 2012 10:34am
- #6
- Quote
- Guest
  
  IP XXX.XXX.219.105
- Quoting krunfx
  
  should be.....watching market open's pa tomorow >_<
  
  whatz pa's mean? Thx. Im new here. whatz pa's mean? Thx. Im new here.
- Guest
  
  IP XXX.XX.184.104
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Story Stats

Posted: Feb 18, 2012 11:38pm

Submitted by: fxtimes

Category: Fundamental Analysis
1,652 Views
6 Comments

krunfx, fxtimes, sidhujag, Follow_Rules, Guest, Guest

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From reuters.com| Feb 19, 2012| 3 comments

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China Pulls Trigger on RRR Cut, Should Help AUD & NZD