More important than fundamentals are the carry/risk trades :

In AU retail sales fell 0.7 per cent in December alone,rose 1.1 per cent for the December quarter, the Australian Bureau of Statistics reported, citing seasonally adjusted numbers. That compares with economists’ forecasts for growth of 0.2 per cent and 1.1 per cent, respectively.

The weakness in the key retail sector helps explain the Reserve Bank’s caution this week when its board left interest rates unchanged - surprising pundits and investors alike. The pause followed three consecutive monthly rate increases, starting last October.

The New Zealand dollar has fallen to below US 70c today, after surprise jobs data showed unemployment rose to 7.3 per cent, its highest level since June 1999.

Statistics NZ said the number of unemployed New Zealanders kept climbing during the December quarter.

This is double the Labour Department forecast..

INot good……..And China is on the way down.

- doubledutch

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