- Chinese HSBC flash manufacturing PMI for Feb up from 49.7 to 50.1
- Australia’s quarterly construction work done down by 0.2%
- Australia’s wage price index up 0.6% in Q4 2014 as expected
- BOE Governor Carney and ECB Governor Draghi set to give speeches today
Way to go, China! Thanks to the upbeat HSBC flash manufacturing PMI report, the comdolls found another reason to party in the forex market today. The reading for February improved from 49.7 to 50.1, indicating industry expansion and outpacing the consensus at 49.6. This suggests that the world’s second largest economy might see a rebound, which supports global growth and risk appetite.
AUD/USD jumped past the .7850 minor psychological resistance after the release and is up 51 pips (+0.66%) so far. The Land Down Under had its fair share of better-than-expected data, as the quarterly construction work done report showed a mere 0.2% decline instead of the projected 1.2% drop. Australia’s wage price index marked a 0.6% gain for the quarter as expected.
NZD/USD is also enjoying a 51-pip gain (+0.68%) and may be on its way to test the .7550 handle. Increased speculations of positive news from the upcoming Fonterra board meeting continued to support the Kiwi, as a recovery in the dairy industry would spell good prospects for New Zealand’s exports and overall economic performance. RBNZ Governor Wheeler’s recent testimony didn’t contain any surprises nor did it push the Kiwi in a particular direction, as he simply focused on the country’s housing sector.
European currencies weren’t able to join the cool kids though, as EUR/USD is up only 7 pips (+0.06%) to the 1.1345 level and GBP/USD is stalling at the 1.5475 resistance area (+0.16%). Against the comdolls, these currencies logged in significant losses, with EUR/NZD down by close to a hundred pips (-0.66%) and EUR/AUD looking at a 94-pip loss (-0.65%), ready to break below 1.4400.
Then again, the party might just be getting started for the pound and the euro, as BOE Governor Carney and ECB Governor Draghi are set to give testimonies. Also up for release in the upcoming London trading session are the Swiss UBS consumption indicator (8:00 am GMT) and the U.K. BBA mortgage approvals report (10:30 am GMT).
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
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