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    NYLON HANDOVER: Chinese Industrial Production Down

    Despite yet more soft data from China the market remained relatively sanguine, probably helped by lower volumes due to US and CAD bank holidays. 

    - Quieter trading overnight due to US and CAD veteran day bank holidays. 
    - Chinese retail sales ticked higher by 0.1% above previous and expected to gain 11% on the month. Industrial production however declined -5.6%, it's 2nd lowest decline since bottoming in March 2009.FX markets took the data in its stride to see AUD crosses finish up on the session. Interesting to note that AUD crosses seem to be reacting negatively on strong US data but holding ground on weak Chinese data.  
    - UK claimant count change (unemployment) saw its third increase this year and average earnings (wage inflation) was slightly below expectations by 0.2% but remained stable at 3% on the mount. 

    - NZ business PMI is out shortly and has remained above 50 since Nov '11. Last month's 55.4 saw the employment component go to 51 so investors will be keeping a close eye on this metric to look for any further signs of weakness following the dire quarterly employment data recently. 
    - Australian unemployment is expected to remain steady at 6.2% but any deviation of 0.2% in either direction could have significant impact on AUD crosses. 14.8k jobs are expected to be created but this is a volatile number between months so can be harder to read. However keeping a close eye on the ratio between FT and PT employment can help decide if the headline figures it’s worth its salt. 

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