Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Chinese data dampens Aussie dollar

Chinese data dampens Aussie dollar


By Tim Waterer (Senior Trader, CMC Markets)

There is no shortage of key events to guide financial market sentiment this week, with the upcoming Bernanke testimony before congress sure to garner plenty of attention from the international investment community to say the least. The stance taken by Bernanke over the US economic outlook will set the table one way or the other for US Dollar direction this week as traders attempt to gauge the FOMC’s preferred timeline for the asset purchase program.

Risk assets from around the globe will take their cues from the Fed Chairman with a key point of interest being whether his testimony is singularly supportive of continuing asset purchases or whether his tone reflects the assortment of opinion contained in the most recent Fed Minutes.

With some clarity appearing to emerge concerning the next Bank of Japan governor, Asian markets commenced the new week in positive territory with gains across the key regional bourses. Further yen weakness was the theme of the day with traders foreseeing the proposed easing measures coming to fruition with the likely appointment of Kuroda as BOJ Governor. The result being that the key yen cross rates were up across the board today.

The Australian Dollar predictably weakened from its earlier highs above 1.03 today after the release of below-forecast Chinese manufacturing data. While the HSBC Flash Manufacturing PMI reading of 50.4 was far from terrible, it did underwhelm a market which has become accustomed to Chinese indicators going from strength to strength. With there being an air of disappointment over the latest Chinese manufacturing data, there was an easing in the price action of some higher yielding assets.

It went from looking like a great day to just a good day on the Australian sharemarket after the underwhelming Chinese manufacturing data dissipated some of the earlier buying momentum. Undoubtedly the Materials sector suffered a setback today on the release of the Chinese data and with some of the big miners reversing course the broader market slipped from the session highs. However, Materials weakness was more than offset by strength in other segments of the market with the banking and retail stocks enjoying a positive outing today courtesy of strong offshore leads.
ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Interest Rates: NZ Dollar Jumps After RBNZ Trims OCR

The New Zealand dollar jumped more than half a US cent after Reserve Bank governor Graeme Wheeler cut the official cash rate by a quarter-point and said the currency needs to be lower, while dropping a reference to criteria that justified intervention. More>>

ALSO:

Drones: New 'World-Class' Framework For UAVs

The rules, which come into effect on 1 August, recognise the changing environment and create a world-class framework that accommodates ongoing development while still ensuring the safety of the public, property and other airspace users. More>>

ALSO:

Scoop Business: NZ Net Migration Reaches New Annual Record In June

New Zealand annual net migration rose to a new record in June as arrivals continued to be bolstered by Chinese and Indian students, while fewer locals departed for Australia. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news