APEC Economy Released Data Showing Expansion

CupO’Forex Daily Forex Technical Analysis – September 3, 2014

Good morning, this is your Daily Video Analysis for Wednesday the 3rd of September. It is all about the Pacific Rim and Asian economies today. China and New Zealand have released key data today and we had comments from Reserve Bank of Australia’s chief, Glenn Stevens.

Firstly, China released its non-manufacturing PMI data this morning which beat expectations. This number printed at 54.40. What do these numbers mean? Very simple, any print above 50 shows expansion, any number below 50 shows contraction. There has been fear growing that the world’s second largest economy has been slowing quite a bit. Positive data, like this, will alleviate some of those investor worries.
New Zealand also released data this morning as we got their annual GDP number. We slightly beat expectations. Their economy did not slow as much as we thought it would. Their GDP expanded at 3.1 percent, slightly above the three percent consensus forecast number.

The Reserve Bank of Australia (RBA) made some noise today as well. RBA Governor Glenn Stevens commented that he feels interest rates are right where they should be. If the bank lowers them now, it would not be good for their “robust” housing market as it could inflate a bubble in that sector. He also remains concerned about the weak personal income levels as well as the strong Australian Dollar.