- EUR/USD jumped to 1.13 in Asia on the back of strong China data, erasing yesterday’s drop to 1.1278.
- The bid tone may strengthen further if both the Eurozone trade surplus and the inflation figure print above estimates.
EUR/USD jumped to 1.13, possibly on the back of upbeat China macro data and could rise further toward the 100-day moving average (MA) resistance at 1.1342 if the Eurozone inflation an trade numbers, due later today, beat estimates.
The common picked up a bid at lows below 1.1280 after China data showed the annualized growth rate steadied at 6.4 percent in the third quarter, as opposed to the consensus estimate of a drop to 6.3 percent. Further, March industrial production growth bettered estimates by a big margin with an 8.5 percent print and retail sales, a barometer of domestic demand, rose 8.7 percent versus an expected print of 8.4 percent.
The upbeat China data could strengthen the narrative that the world’s second-largest economy has bottomed out and the global industrial cycle is on the verge of recovery.
As a result, riskier assets could remain better bid in Europe, lending a helping hand to the shared currency. As of writing, however, the major European equity index futures are pointing to mixed trading and EUR/USD is trading at 1.1303.
Focus on Eurozone data
Eurozone’s seasonally adjusted trade surplus is seen narrowing to €14.7 billion in March from the previous month’s print of €17 billion. Meanwhile, the cost of living, as represented by the consumer price index, is expected to have increased 1 percent month-on-month in March. Both numbers are due for release at 09:00 GMT.
The 17-nation currency could rise to the 100-day MA, currently at 1.1342, if the Eurozone data beats expectations and riskier assets cheer China data.
Technical Levels
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