The Australian Dollar Rose After China's PMI Index
Masterforex-V | Jul 25, 2014 05:11AM ET
The AUD/USD jumped today, July 24, against the benchmark CPI release in the second quarter, which exceeded expectations. Traffic on the short end of the curve Australian rates has some support for this dynamic, as the two-year rate hold about 6-8 basis points above recent lows, although, apparently, the Australian dollar catalysts derives not from the policy of the Central Bank, as noted the experts of the Forex market.
Interest from reserve managers and transactions carry against the euro may be potential sources of purchase as a further correction of forecasts for the coming policy easing by the RBA - forecast 12-month forward rate is held approximately 0.05% compared with a minimum of -0 15% set last week.
Deputy Chairman of the Bank of Japan, Hiroshi Nakas, delivered a speech in which he said that "Japan wins deflation in the foreseeable future", although the Bank of Japan is only half way to the target, according to his estimates. He noted that the Bank of Japan will be ready to reduce the period of inflation in the coming months, owing to the base effect of the sharp rise in energy prices last year, but added that inflation gradually picks up speed again in the direction of the target value of 2%. He also mentioned that the recent decline attributable to changes in demand due to the VAT increase on April 1, in line with expectations the Bank of Japan.
Aussie shows growth
According to the experts of the Forex Broker Company TeleTrade, the Australian dollar rose against major currencies after China's PMI index. Manufacturing PMI HSBC China amounted to 52.0 vs. 51.2 expected. The indicator is calculated based on a survey of about 400 purchasing managers, who assess the level of business conditions including employment, production, new orders, shipments and inventory.
Value above 50 indicates expansion of the industry. The PMI is one of the main indicators of the situation in the Chinese economy, as production reacts quickly to changes in market conditions and purchasing managers may have the most objective and relevant views on the situation in the sector, say the analysts of TeleTrade (rated among the TOP Forex Brokers of the Masterforex-V World Academy).
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