LTG GoldRock Review: An Insider Look at the Forex News

The below is an inside look at part of the GoldRock Insider Report for October 24th, 2013.
Each morning LTG GoldRock Members receive a professional Forex update via email from Andrew Barnett and the LTG GoldRock Trading Team.

China spooks markets once again.
It was only some months ago that the Chinese overnight bank lending rate sky rocketed higher causing financial markets to pause and reverse their upward trends as investors worried that China's banks had too much bad debt on its books. Wednesday rumours were jumping that one of China's biggest banks the Industrial and Commercial Bank wrote off $3.7 Billion of bad debts in the first 6 months of 2013 due to the housing bubble that many predicted would cause bad debt amongst China's banks. This news sent emerging market currencies lower once again and rallied the safe haven currencies such as the Yen, Swiss Franc and US Dollar.

A few interesting stats.
-  Whilst China may have some bad debts on its books, so does European Banks and the ECB is going to stress test about 160 of them in the coming months to see how they would handle having to write much of these bad debts off. In other words would they have enough cash on hand to survive if these bad debts did not pay up. European traders didn't like this idea and sent the Euro and European shares lower on Wednesday.

-  Keep an eye out today for the latest China Flash PMI that is released at 12.45pm AEDST. It will likely be the flavour of the day throughout the Asian session.

Economic Calendar: Times are AEST (Sydney Time)

• 12.45pm  CNY        China Flash HSBC PMI
• 6.30pm    EUR        German PMI data
• 7.00pm    EUR        Euro Zone PMI data
• 11.30pm  USD         Weekly jobless claims