Forex Today: AUD lifted by China imports and risk-on, a light session ahead

Forex Today was driven by risk-on sentiment, as the demand for the greenback resurged across the board, despite the White House statement cited that "no final decision has been made" on Syria. The Asian equity markets continued to ride higher on Thursday’s US President Trump’s tweet - ”never said when an attack on Syria would take place’, which boosted the risk assets.

Among the Asia-pace currencies, the Aussie was the top gainer, as the bulls cheered stronger Chinese import data and risk-friendly market environment. The Kiwi, on the other hand, traded subdued amid dismal NZ business manufacturing PMI while the Yen remained better offered versus its American rival, but the bears continued to guard the 107.50 barrier.

Main topics in Asia

Russia wants coordinates of US strike targets - Russian media

Russian news media is reporting that Russia is demanding the coordinates of the US' targets in Syria for impending missile strikes.

US could unveil new tariff list on China by next week - WSJ

The Wall Street Journal is reporting that the US is going ahead with an expanded list of tariffs against China for a further $100 billion in duties on Chinese-made goods. 

Japan Business Federation: Should consider raising tax above 10 percent

The news is crossing the wires via Bloomberg that Japanese Business Federation Nippon Keidanren has called for raising tax above 10 percent. 

RBA FSR: Risks to Australia economy from China remain elevated

The Reserve Bank of Australia (RBA) published its semi-annual Financial Stability Report (FSR), with the key headlines found below (via Reuters).

US President Trump: Japan has hit us hard on trade for years

"Would only join TPP if the deal were substantially better than the deal offered to Pres. Obama. We already have BILATERAL deals with six of the eleven nations in TPP, and are working to make a deal with the biggest of those nations, Japan, who has hit us hard on trade for years!"

China’s March trade data (CNY): shows deficit on exports slump

China's trade balance for March, in Yuan terms, came in at CNY -29.78bn. Exports came at -9.8% y/y vs +8.0% expected and +36.2% last, while imports were +5.9% y/y vs +7.5% expected and -0.2% last.

China reports first monthly trade deficit in USD terms since Feb 2017

The China customs published trade balance for March in USD terms, reporting a trade deficit on massive imports surge.  

Key Focus ahead

Another data-quiet EU session today, with the except of the second-liner data in the German final CPI and Eurozone trade figures, which are likely to have limited impact on the fx markets. The risk trends will continue to remain the major driver amid developments surrounding the Syria issue.

The US docket sees the prelim UoM Sentiment and JOLTS job openings releases alongside the speeches by the FOMC members Bullard and Kaplan, which will hog the limelight, especially after the latest hawkish FOMC March meeting minutes.

EUR/USD trying to hang on to 1.23 ahead of German CPI

The Eurozone sees a smattering of data for Friday's session, with CPI figures from Germany and Spain at 06:00 GMT and 07:00 GMT respectively, but the key figure to watch will be the headline year-on-year German Harmonized CPI for March at 06:00. 

GBP/USD: Bullish outside day, eyes Brexit trade talks

The UK and the European Union will start talks next week on their trade relationship after Brexit. As of now, the two sides stand divided on the key issues. The British Pound could set new yearly highs next week if the trade talks begin on a positive note.

GBP/USD rises towards major highs ahead of key events

Looking further ahead to next week, some key UK-related economic data will be released, which will likely have a substantial further impact on the pound and GBP/USD.