Forex Marketz Daily Forex News – Fully Markets Update
This morning, the Australian dollar moved higher against the US dollar and its major G-20 counterparts. This move comes after better than expected Chinese purchasing managers’ index (PMI) data. Please recall that with this data series, anything over 50 is expansion, while anything below is contraction.
The official Chinese PMI came out earlier than expected, well before the scheduled 1:00 GMT release time. The PMI print printed at 54.5 in May. This is slightly higher than the print of 54.0 in April. After that release, the non-manufacturing PMI was released 7 minutes later. This PMI series came in unchanged at 51.2. This was slightly better than the 51.0 estimated.
The Australian dollar finds support with Chinese Data
It should come as no shock that that the Australian dollar reacted positively with today’s Chinese data release. China is Australia’s largest trade partner and China’s economic news-flow ha certain knock on effects with Australia’s economy. Therefore, economic news from China tends to illicit a response from the Aussie dollar.
The Australian dollar, after the news move a tad higher. The AUD/USD Fore market was fetching $0.7474. The AUD later stabilized to trade at $0.7459 as of 9:30 am Hong Kong time. As we had mentioned earlier, should the numbers, for the PMI disappointed, then Beijing could have switch its focus back to economic growth again.
On the economic calendar for tomorrow, Thursday, China will release the private Caixin PMI. This is scheduled for released early Thursday morning.
