Asian Session – China data lifts market sentiment, Aussie rises
September 2, 2013 6:30 am
Markets started the new trading week with a more upbeat tone, with China manufacturing PMI data lifting risk sentiment.
The PMI index rose to a 16-month high in August, signalling that China, which is the world’s second largest economy, is strengthening after a two-quarter slowdown. PMI gave a reading of 51.0 when released on Sunday, above the median estimate of 50.6.
The Aussie benefited the most from the data since China is a major trading partner for Australia. AUDUSD advanced 0.8 percent to 89.71 U.S. cents, after slipping 1.4 percent last week.
Also supporting the Aussie was domestic data which showed building approvals in Australia increased more than expected to 10.8 percent versus 4.1 percent expected, up from a previous decline of 6.3 percent.
The yen fell against all of its major peers on speculation that bolder monetary easing measures will be implemented. Japan’s Prime Minister Shinzo Abe got backing for a sales-tax increase from panels that urged an increase in stimulus, which will have a weakening effect on the currency.
The yen lost 0.4 percent against the dollar as USDJPY opened in Asia at 98.42 and hit a session high of 98.66 yen.
EURJPY rebounded from a two-week low, climbing up to 130.30 compared to a Friday close of 129.75 yen.
Euro opened lower against the dollar at $1.3212 compared to Friday’s close of $1.3220, before subsequently trading the rest of the session in a range. The will likely be little changed until a series of PMI data from Europe will be released later in the European session this Monday.
Sterling gained against the dollar, opening in Asia at $1.5531 and rising to $1.5564. U.K. manufacturing PMI data are in focus.
Markets started the new trading week with a more upbeat tone, with China manufacturing PMI data lifting risk sentiment.
The PMI index rose to a 16-month high in August, signalling that China, which is the world’s second largest economy, is strengthening after a two-quarter slowdown. PMI gave a reading of 51.0 when released on Sunday, above the median estimate of 50.6.
The Aussie benefited the most from the data since China is a major trading partner for Australia. AUDUSD advanced 0.8 percent to 89.71 U.S. cents, after slipping 1.4 percent last week.
Also supporting the Aussie was domestic data which showed building approvals in Australia increased more than expected to 10.8 percent versus 4.1 percent expected, up from a previous decline of 6.3 percent.
The yen fell against all of its major peers on speculation that bolder monetary easing measures will be implemented. Japan’s Prime Minister Shinzo Abe got backing for a sales-tax increase from panels that urged an increase in stimulus, which will have a weakening effect on the currency.
The yen lost 0.4 percent against the dollar as USDJPY opened in Asia at 98.42 and hit a session high of 98.66 yen.
EURJPY rebounded from a two-week low, climbing up to 130.30 compared to a Friday close of 129.75 yen.
Euro opened lower against the dollar at $1.3212 compared to Friday’s close of $1.3220, before subsequently trading the rest of the session in a range. The will likely be little changed until a series of PMI data from Europe will be released later in the European session this Monday.
Sterling gained against the dollar, opening in Asia at $1.5531 and rising to $1.5564. U.K. manufacturing PMI data are in focus.
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