On Friday, the 12th of April 2019, most of the emerging market currencies gained against a much-softer American dollar, after signs of stabilization of Chinese economy had reflected on Friday’s (April 12th) data, undermining threats of a global slowdown, while Brazilian equities were plunged following a snap in Petrobras and renewed uncertainties over its much-anticipated pension reform.
Earlier on Asia-Pacific trading hours, Chinese official data had revealed that its exports had surged to a five-month high in March, though imports sank for the fourth straight month in a row, reflecting a mixed paining of the Chinese economy.
Besides, there had been a robust upsurge of bank loan on March, as new Chinese loans had doubled in March to 1690 billion Yuan from a previous 885.5 billion yuan, indicating an installment of a more aggressive financial stimulus.
Followed by the release of the data, most of Emerging market currencies had wrapped up the week higher, while Mexican Peso rose by 0.4 percent, breaching its highest level since mid-March. Mexican Peso posted a weekly gain of 1.7 percent against American dollar, while other Latin American currencies had also remained riant.
As MSCI’s gauge of emerging market index rose by 0.15 percent against American dollar on Friday (April 12th), an analyst at Citi Research wrote in a client note, “While the market has been expecting better China data, positioning is still light. We are positive on Latam FX as the better China sentiment is gathering steam”.