Wednesday, March 10, 2010
Chinese Data to Set Market Tone
All eyes are on China this tonight. Chinese economic data has become almost as important as U.S. economic data in some respects and expect tonight's laundry list of economic reports could set the market tone for the next 24 hours. Last night, risk appetite improved after China's trade balance decreased less than the market had anticipated. Exports were stronger than expected while the pickup in imports reflects more strength than weakness for the Chinese economy. This evening, retail sales, industrial production, producer and consumer prices are due for release. If manufacturing activity remains strong and consumer spending grows at a faster pace, risk appetite should improve, sending the dollar lower against higher yielding currencies and higher against lower yielding ones. However if the data disappoints, it could trigger a wave of risk aversion across the forex market.
*Note Itz Pix Market Vectors Gold Miners ETF [GDX] was stopped out intraday today as it hit the suggested $45 level. Itz continues to like the mining stocks over the metal itself, based on valuation. GDX as well as the Junior Miners [GDXJ] are and continue to remain on the radar and maybe re-entered. Don't forget Yamana Gold [AUY] as well as silver miner Silver Wheaton [SLW] & copper Freeport McMoran [FCX] remain in the Itz Pix portfolio.
Again watch Euro Dolar $XEU in Forex trding 1.3640 gold is @ $1,109.