Forex - AUD/USD weaker after HSBC China PMI data unchanged
Published Jan 01, 2014 09:13PM ET
Australia’s performance of manufacturing index in December was down by -0.1 points to 47.6. The index remained in the contraction zone for 10 months of 2013 and rose only in the months of September and October because of a lift in sentiment related to Federal elections.
AUD/USD traded at 0.8901, down 0.26%, while USD/JPY traded at 105.31, up 0.02% with Japanese markets remaining closed on Thursday for holiday.
The December HSBC China Manufacturing PMI came in at 50.5, unchanged from the flash reading and on forecast. China is the top export destination for key Australian commodities such as iron ore.
"The moderation of December's final HSBC China Manufacturing PMI was mainly due to slower output growth," said Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC.
"However, the final PMI sustained the fifth above-50 reading in a row thanks to a steady increase of new orders. The recovering momentum since August 2013 is continuing into 2014, in our view. With inflation still benign, we expect the current monetary and fiscal policy to remain in place to support growth."
EUR/USD was up 0.04% at 1.3764.
This week, the Conference Board had reported that its index of U.S. consumer confidence improved to 78.1 in December from 72.0 in November, beating consensus forecasts for a 76.0 reading.
On Tuesday, the Standard & Poor’s/Case-Shiller 20-city home price index rose at an annualized rate of 13.6% in October from a year earlier, the strongest pace since February of 2006 and above forecasts for an increase of 13.0%.
The data confirmed expectations for the Federal Reserve to continue winding down stimulus programs such as its USD75 billion in monthly bond purchases next year and let the economy stand on its own feet.
Fed bond purchases tend to weaken the dollar by driving down interest rates to spur recovery.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.12% at 80.29.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.