Asian Session Recap – June 23, 2014

  • Chinese HSBC flash PMI up from 49.4 to 50.8 in June
  • China’s Beige Book reveals weak spots in economy
  • Japanese flash manu PMI up from 49.9 to 51.1
  • New Zealand credit card spending up by 7.5% y/y
  • New Zealand visitor arrivals up by 0.3%
  • Euro zone PMI figures up for release

Way to go, higher-yielders! The commodity currencies raked in the gains in today’s Asian trading session, after China reported a stronger than expected HSBC flash manufacturing PMI. Analysts expected the index to climb from 49.4 to just 49.7, but the actual reading landed at 50.8. This indicated a return to expansion for the industry, which has been contracting for the past few months.

New Zealand also had its fair share of good data, as the visitor arrivals report showed a 0.3% monthly uptick while the credit card spending release printed a 7.5% annual increase. NZD/USD resumed its ascent towards the next resistance area at .8750 while AUD/USD broke through a short-term ceiling around .9420.

Over in Japan, manufacturing PMI saw an improvement from 49.9 to 51.1, also reflecting a return to industry expansion. Against the dollar, the yen had a continuous run, as USD/JPY slipped below the 102.00 handle. However, the yen’s rally got a little shaky when BOJ Governor Kuroda emphasized that easing efforts are starting to take effect but that Japanese economic performance is just halfway through the BOJ’s target. Could they be gearing up to ease again?

In the next few hours, the euro zone will be releasing its PMI figures from Germany and France. Germany already reported some downward revisions in its manufacturing and services PMI, which means that even weaker readings might lead to more euro weakness.

 

U.S. Session Recap

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