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

February 17, 2017
US dollar poised to end the weak on a bearish note
The US economic data continued to post strong gains with building permits and Philly Fed manufacturing index beating expectations strongly. However, the markets were not quite impressed despite the data points supporting the hawkish Fed for more rate hikes...
February 17, 2017
Brent remained rather unchanged
There seems to be little drive for any real direction now. Brent remained rather unchanged on Thursday staying in a tight range above 55.50 dollars per barrel. The Asian upward impetus lost it legs when European markets opened...
February 16, 2017
U.S. dollar remained near its fresh highs
After touching the level 1.0550 the euro bounced off and was able to reverse a minor part of its losses. The overnight’s recovery attempt stalled just under 1.0600 barrier. The pair came under renewed selling pressure and slipped into negative territory in the late Asian session...

NPBFX Rating
Grand Capital Rating
XM Rating
FXCM Rating
FOREX.com Rating
FxPro Rating

First Binary Option Service Rating
24option Rating
TropicalTrade Rating
Banc De Binary Rating
EZTrader Rating
Beeoptions Rating