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21 Aug 2014
AUD hurt by Chinese release - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, assesses the performance of the AUD in the wake of Chinese data and events in US.
Key Quotes
"The Australian dollar has been undermined overnight by both the release of the more hawkish than expected FOMC minutes and the release of the weaker than expected HSBC manufacturing survey from China for August. The survey revealed that business confidence in the manufacturing sector declined by 1.4 point to 50.3 in August which was the second consecutive monthly decline."
"Business confidence still remains well above the low from March of 48.00 although the recent pullback does signal that growth momentum in China does appear to easing. Both domestic and external orders rose at slower rates."
"The loss of economic momentum will increase pressure on Chinese policy makers to provide further stimulus to support economic growth. The Chinese renminbi has also weakened overnight with USD/CNY on track to record its largest daily percentage increase since mid-June."
Key Quotes
"The Australian dollar has been undermined overnight by both the release of the more hawkish than expected FOMC minutes and the release of the weaker than expected HSBC manufacturing survey from China for August. The survey revealed that business confidence in the manufacturing sector declined by 1.4 point to 50.3 in August which was the second consecutive monthly decline."
"Business confidence still remains well above the low from March of 48.00 although the recent pullback does signal that growth momentum in China does appear to easing. Both domestic and external orders rose at slower rates."
"The loss of economic momentum will increase pressure on Chinese policy makers to provide further stimulus to support economic growth. The Chinese renminbi has also weakened overnight with USD/CNY on track to record its largest daily percentage increase since mid-June."