Forex Marketz Daily Forex News – Fully Markets Update
The AUD/USD, or Aussie dollar Forex market was largely unmoved by a stronger than expected Caixin manufacturing survey out of China. China is Australia’s largest regional trade partner but Aussie traders seem to be focused elsewhere.
The Caixin manufacturing purchasing managers’ index (PMI) rose to 50.4 in June. This was well above, both, the 49.8 expected and May’s 49.6 print. It was also a three month high. More importantly, it was a return to expansion territory.
While the release was positive, purchases for inventory and finished goods fell into contraction territory. This suggests that, while business may be good for Chinese manufacturers, firms are not restocking. They might if gains will be sustained. Much of the overall increase was down to quite marginal gains in production and new orders.
The Caixin index only reports China’s smaller, private companies. The official PMI, released earlier, which concentrates on larger, often State linked businesses. The two PMIs can often be at odds but not this month. The official PMI print also beat expectations when it was released last week.
The Aussie Dollar shrugs of China’s PMI Data
The Aussie dollar seemed to shrug off today’s PMI data out of China. This could be due to thinner markets as the US Independence Day holiday, which is tomorrow, limits trade. Also on investor minds, the Reserve Bank of Australia will have its July monetary policy meeting on Tuesday. The RBA is not expected to move the key official cash rate off its 1.50% record low, However, given the more hawkish tone struck by many western central banks, investors are waiting to see whether the RBA follows them.
