ForexLive Asian market wrap: Strong Australian jobs data surprises; China trade surplus also strong

Australian unemployment rate much lower than expected at 4.9% China's April trade surplus $18.4 billion, better than expected $8.8bln Exports +4.9% YoY (8.5% expected). Imports +0.3% YoY (11% expected) South Korean central bank keeps rates unchanged Japanese trade data shows improvement in exports Japanese capital flows in week to May 5th BOJ Shirai watching FX moves closely CIC stops buying EZ government bonds Sterling faces big European session with industrial production, BOE QE update and barriers in EUR/GBP Regional stocks generally flat after opening lower Gold $1594/oz; Oil $96.75/bbl Risk-aversion sentiment took a break today in the Asian morning session, after surprisingly strong Australian jobs data (albeit inspired by part-time jobs and a lower participation rate) helped the unemployment rate fall back below 5.0%. The RBA has traditionally considered an unemployment rate below 5.0% as expansionary and therefore the prospects of further rate cuts have been severely diminshed. AUD/USD had been creeping higher in early Tokyo trade on the back of profit-taking in AUD/JPY particularly, and was trading at 1.0050 prior to the data and immediately spiked up to 1.0085 where it briefly steadied before pushing again to intermediate highs at 1.0118 (just below touted sell orders 1.0120/25). The much lower than expected imports component of the Chinese trade data then sent the AUD back below 1.0100. Ranges: 1.0033/1.0118 The other currencies have been fairly quiet, taking their lead from the AUD. EUR/USD traded a 30 pip range with EUR/JPY short-covering a noticeable factor. It moved higher alongside the AUD after the jobs data and then fell back on the low China imports data. Ranges: 1.2923/56 USD/JPY has again been at the mercy of cross flows in fairly tight ranges, 79.59/77. Cable 1.6120/49 but should be much busier tonight. EUR/CHF 1.2007/12. EUR/GBP .8010/25