Economic data was minimal in Monday’s Asian session, with the only tier one data being from China. Official China Manufacturing PMI data were released on Sunday and the HSBC Final Manufacturing PMI today caused big moves for the Australian dollar.
China is Australia’s major trading partner so the aussie jumped on news that the world’s second largest economy maintained a steady growth momentum in November. The official data showed manufacturing held at an 18-month high at 51.4, while the private reading came out slightly above forecast at 50.8., both in expansionary territory.
Also supporting the AUD was domestic data that showed Australia’s building approvals did not decline as much as expected. The Aussie rose 0.5% against the greenback to 0.9150.
The Reserve Bank of Australia’s policy meeting on Tuesday will be closely watched.
The US dollar remained broadly weaker against its major counterparts. The main driver for the USD will be Friday’s all-important nonfarm payrolls data. US jobs data are closely watched by the Federal Reserve, as the data will play a part in determining when it can reduce stimulus.
The dollar was steady at 102.41 yen, down 0.10% in the Asian session after hitting a 6-month high of 102.60 yen on Friday.
The euro gained 0.11% against the dollar in Asia to 1.3601, moving closer to a 1-month high of 1.3620 hit on Friday. The euro rose 0.06% against the yen to 139.31.
The main driver for the euro today will be data on manufacturing PMI from the Euro zone and various Euro zone economies. So far, predictions are positive and expectations are for a fifth-straight period of manufacturing expansion in the region.
Manufacturing PMIs out of the UK are also scheduled for release later today, with forecasts for an increase. In such a case this would raise expectations of early Bank of England tightening in monetary policy. This is helping support the pound for now, as it gained 0.31% against the dollar in Asia today to 1.6418.
Economic data was minimal in Monday’s Asian session, with the only tier one data being from China. Official China Manufacturing PMI data were released on Sunday and the HSBC Final Manufacturing PMI today caused big moves for the Australian dollar.
China is Australia’s major trading partner so the aussie jumped on news that the world’s second largest economy maintained a steady growth momentum in November. The official data showed manufacturing held at an 18-month high at 51.4, while the private reading came out slightly above forecast at 50.8., both in expansionary territory.
Also supporting the AUD was domestic data that showed Australia’s building approvals did not decline as much as expected. The Aussie rose 0.5% against the greenback to 0.9150.
The Reserve Bank of Australia’s policy meeting on Tuesday will be closely watched.
The US dollar remained broadly weaker against its major counterparts. The main driver for the USD will be Friday’s all-important nonfarm payrolls data. US jobs data are closely watched by the Federal Reserve, as the data will play a part in determining when it can reduce stimulus.
The dollar was steady at 102.41 yen, down 0.10% in the Asian session after hitting a 6-month high of 102.60 yen on Friday.
The euro gained 0.11% against the dollar in Asia to 1.3601, moving closer to a 1-month high of 1.3620 hit on Friday. The euro rose 0.06% against the yen to 139.31.
The main driver for the euro today will be data on manufacturing PMI from the Euro zone and various Euro zone economies. So far, predictions are positive and expectations are for a fifth-straight period of manufacturing expansion in the region.
Manufacturing PMIs out of the UK are also scheduled for release later today, with forecasts for an increase. In such a case this would raise expectations of early Bank of England tightening in monetary policy. This is helping support the pound for now, as it gained 0.31% against the dollar in Asia today to 1.6418.
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