The Chinese PMI data is weaker but the market is running on the news below. Miss the open long at 4472 as I slept in when sp jumps before our spi open but did got short at 4510 & 4515 and in & out now.
My budgie reckons the news below is full of [content moderated] and she loves it when S&P future makes a big move during our trading session.
Robbbbb, leave me budgie alone and show some respect for God.
Caixin Online
Aug. 1, 2010, 8:00 p.m. EDT
Nimble exporters add weight to forex reform China central bank Deputy Gov. Hu Xiaolian discusses yuan rate changes By Wang Shuo, Ye Weiqiang and Jiang Aike, Caixin Online BEIJING (Caixin Online) -- Not only did China's crucial export sector survive recent foreign-exchange adjustments, but some overseas traders actually came out ahead, according to a central bank deputy governor, adding weight to initiatives for rate reform.
Exporters, many hard-hit by the global financial crisis, have been among the fiercest opponents of currency-reform moves, including a recent decision that strengthened the yuan against the U.S. dollar for the first time since 2008.
About Caixin Caixin is a Beijing-based media group dedicated to providing high-quality and authoritative financial and business news and information through periodicals, online and TV/video programs. Get the Caixin e-newsletter61611 But the bank's Hu Xiaolian, in an exclusive interview with Caixin, said the adjustments "did more good than harm," as exporters bargained with overseas clients, raised prices or found other ways to compensate for currency fluctuations.
"Many companies negotiated with foreign customers and succeeded," she said. "Looking back, people overvalued the negative impact of reform and undervalued the ability of companies to be nimble and make timely adjustments."
The coping ability of exporters has been a key concern for years. Hu said a "golden age for foreign trade" in China ended after exports soared 23% and imports rose 19% between 2006 and 2008.
China's economy is now shifting to greater domestic consumption, with less reliance on export-based industries, especially those whose Western markets have withered. Companies that sell overseas are tapping Chinese markets, Hu said, while importers have been helped by yuan appreciation.
"Those that sell to both domestic and foreign markets can increase the domestic share to alleviate losses," she said. "Companies having both export and import businesses can benefit from the yuan's appreciation."
China plans to move forward with currency exchange-rate reform, pending a future mechanism that reflects market supply and demand, Hu said. She considers the current fluctuation span of plus or minus 0.5% appropriate for the time being, but said the central bank would not rule out widening that spread in the future.
"Overall, advantages of exchange-rate reform outweigh disadvantages," Hu said. "Our evaluation of the impact of exchange-rate changes shouldn't be limited to the competitiveness of an individual export company, but to view [of] the competitiveness of the whole manufacturing sector in foreign trade."
China halted a three-year project that let yuan exchange rates float in 2008 to counter a possible global recession. A similar policy had been adopted in 1997, when the Asia Financial Crisis began and China pledged not to depreciate the yuan.
Also in the interview, Hu suggested public disclosure of China's fluctuating nominal effective exchange rate, which is calculated against a basket of currencies, to de-emphasize the yuan's rate against the U.S. dollar. See this report on Caixin Online.
(20min delay)