Aussie outperforms on China data

September 2, 2013

The Asian markets reacted positively to data out of China which gave hope that the second largest global economy is track for growth after a recent slowdown.

China’s manufacturing sector showed signs of growth in august based on two PMI indexes. The HSBC PMI was up at 50.1 in August, up from July’s 11-month low of 47.7. Meanwhile the official Chinese government PMI also rose, giving a reading of 51.0, above the median estimate of 50.6.

The Australian dollar opened on Monday with a gap of some 40-pips higher against the U.S. dollar after reacting to the China data. AUDUSD rose  to $0.89.7, up 0.8 percent after slipping 1.4 percent last week.

China is a major export destination for Australia so the strong data is positive for the Aussie. Also domestic Australian building data lifted the Aussie. Building approvals in increased more than expected to 10.8 percent versus 4.1 percent expected, up from a previous decline of 6.3 percent.

In other currencies, the yen weakened on news that Japanese PM Shinzo Abe will implement higher sales taxes as part of a plan to stimulate the economy. USDJPY gapped higher to above 98.30 while EURJPY rebounded from a two-week low, climbing up to 130.30.

Euro is steady around $1.3200 after slipping slightly in the Asian open, as investors are waiting for a series of PMI data out of Europe today.

Sterling gapped higher, on the back of news of a Verizon / Vodafone merger. The pound’s direction will be clearer as focus turns to U.K. manufacturing PMI data. GBPUSD opened in Asia at $1.5531 and rose to a session high of $1.5564.

Publication source
FxNet information  FxNet reviews

December 2, 2016
Equities headed broadly south in Asia overnight
Revealed a solid 53.2 November ISM reading and a 0.5% October construction spending rise that followed big upward Q3 revisions, both of which lifted prospects for GDP. We also saw a 17k Thanksgiving week spike in claims that reversed the remarkably tight 333k Veteran's Day figure...
December 2, 2016
Silver lining for precious metals?
I do apologise in advance for bombarding you with lots of commodity reports, but ahead of Friday’s NFP report, the FX markets tend to create lots of false moves, so it is difficult to make much of todays moves...
December 2, 2016
Payrolls Friday. USDJPY doji, third time's a charm
Its payrolls Friday and the markets are expecting to see a solid print for November following Wednesday's ADP payrolls increase. Yesterday, the ISM and Markit's manufacturing PMI showed a strong increase in the reading...

OANDA Rating
FBS Rating
FOREX.com Rating
Orbex Rating
FIBO Group Rating
Grand Capital Rating

EZTrader Rating
IQ Option Rating
TopOption Rating
Binary Brokerz Rating
OptionFair Rating
365BinaryOption Rating