24 Jul 2013
Flash: China weighing on AUD – TD Securities
FXstreet.com (London) - Research teams at TD Securities noted the performance of AUD post Chinese data overnight.
Key Quotes:
“A miss on the flash HSBC Chinese manufacturing PMI contrasted the better than expected PMI’s from German and France overnight, and the reaction in the FX space reflects that divergence with the EUR at the top of the G10 performance ranks and AUD at the bottom”.
“The AUD had a lot to digest in a short period, with a mixed but overall better than expected Australian inflation report initially lifting the currency above 0.9300 before the flash Chinese PMI unwound any positive tone shortly after”.
“The somewhat better inflation report suggests the threat of an RBA rate cut next month has diminished slightly, but the more pressing concern for markets is the state of activity in China”.
“The flash PMI raises fears of a sub-50 print for the official PMI next week, and such an outcome could re-ignite fears of a ‘hard landing”.
Key Quotes:
“A miss on the flash HSBC Chinese manufacturing PMI contrasted the better than expected PMI’s from German and France overnight, and the reaction in the FX space reflects that divergence with the EUR at the top of the G10 performance ranks and AUD at the bottom”.
“The AUD had a lot to digest in a short period, with a mixed but overall better than expected Australian inflation report initially lifting the currency above 0.9300 before the flash Chinese PMI unwound any positive tone shortly after”.
“The somewhat better inflation report suggests the threat of an RBA rate cut next month has diminished slightly, but the more pressing concern for markets is the state of activity in China”.
“The flash PMI raises fears of a sub-50 print for the official PMI next week, and such an outcome could re-ignite fears of a ‘hard landing”.