China reported a USD 51.35 billion trade surplus in January of 2017, lower than a USD 56.67 billion surplus a year earlier but above market consensus of a USD 47.90 billion surplus.

It was the largest trade surplus since January 2016, mainly driven by a rebound in exports while imports rose further.

In yuan-denominated terms, exports jumped 15.9 pct from a year earlier in January 2017, compared to a 0.6 pct rise in a month earlier.

Inbound shipments surged 25.2 pct, following a 10.0 pct rise in the prior month. In December 2016, the country reported a marginally revised USD 40.71 billion surplus.

The breakdown of January trade data will be released on February, 23rd.

The NZD underperformed after the RBNZ disappointed a hawkish market, extending the decline overnight to 0.7174.

NZDUSD has been correcting the Dec-Feb rally, with the 0.7180 level representing a common 38% retracement.

We had anticipated NZD slumps on 6th Feb and advocated suitable hedging vehicle accordingly, and they seem to be safeguarding the slumps in underlying spot that’s been  showing from the last 4 days, we now uphold longs in 2 lots of 1y -0.49 delta put options, while buying 1 lot of +0.51 delta calls of similar expiry.

Please follow below weblink for our previous write up on hedging piece:

http://www.econotimes.com/FxWirePro-Diagonal-option-strips-to-favor-both-short-term-upswings-and-positively-skewed-IVs-on-OTM-put-strikes-524002