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Dollar rises against most currencies as NY enters. Weaker China Trade send AUDUSD down

The dollar is opening with modest gains against most currencies on the first day ofthe better than expected US employment report on Friday (the USDJPY being an expception).  In news over the weekend, China announced the largest trade deficit since 1989.   The European turmoil is being cited for the decline as exports rose by a less than expected 18.4%(exp +31.1%)  from last year while imports increased by 39.6% (vs +31.8 exp).  The total deficit came in at -31.48 billion (vs estimates of -5.35 billion) .  The numbers may be a bit distorted however, because of the Lunar New Year holiday which was in January this year (Feb last year). Nevertheless, the weakness may lead to further easing down the road with a lowering of the reserve requirement and weaken the currency. Last week growth was lowered in China. The news sent the AUDUSD to its lowest level since January 25th 2011 and looks toward the 38.2% of the move up from the December low at the 1.0474 level.  In other news out of Asian Japan Machine orders increased by a greater than expected 3.4% vs 2.3% expected while consumer confidence fell to 39.5 vs expectations of 40.5. The Yen got stronger and gave back some of the USDJPY gains following last weeks stronger than expected US Unemployment report.  The report of a 227k gain in jobs (and revision to the previous month to 285k from 257K) sent the USDJPY to the highest level since April 27th 2011. In the Eurozone, the finance ministers will be meeting to discuss the distribution of the next tranche for Greece and also to review the budget process Portugal and Spain, the other weak sisters in the EU.  Greece used the Collective Action Clause (or CAC) to force bondholders to accept the haircut on bond holdings by private sector investors.  This has led to a credit event which is estimated to be $3 billion in the Credit Default Swap market.  The ECB/EU and other central bankers will be hoping that a contagion does not spread to those nations and lead to any further credit events that could lead to the house of cards coming tumbling down.