Forex – Aussie gains in early Asia ahead of China PMIs

Forex
© Reuters.  Aussie up in Asia© Reuters. Aussie up in Asia

Investing.com – The Aussie was higher in early Asia on Wednesday with the market awaiting manufacturing data from China.

was last quoted up 0.35% to 0.7465 ahead of the China PMI manufacturing figures. Australia’s economy is closely dependent on commodity exports to China.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.14% to 97.19 by 13:23 EDT.

changed hands at 110.79, down 0.42%.

Ahead, Japan reports provisional for April with a gain of 4.3% seen month-on-month. China reports the official for May with a level of 51.0 seen, a dip from 51.2 in April. The is also due with a level last at 54.0 in April. A figure above 50 denotes expansion. The private from Caixin is due on Thursday.

Australia reports for April with a gain of 0.4% seen.

Overnight, the dollar fell against a basket of major basket currencies, as investors mulled over the prospective of a rebound in U.S. economic growth in the second-quarter amid a dip in consumer confidence.

Investors mulled over a mixed bag of economic data released on Tuesday, as consumer confidence dipped in April while consumer spending recorded its biggest increase in four months.

The Commerce Department said that consumer spending, which accounts for roughly 70% of U.S. economic activity, rose 0.4%, in line with economists’ forecasts.
The Consumer Confidence Index fell to 117.9, which was below expectations of a rise to 119.8.

Losses in the greenback were capped, however, as investor expectations that the Federal Reserve will hike interest rates in June remained elevated.

According to investing.com’s over 80% of traders expect the Fed to hike its benchmark rate in June from 0.75-1% to 1-1.25%.

The dollar has failed to recover from its slump in recent weeks, wiping out all of its gains since Donald Trump was elected U.S. president, as investors feared that recent political scandals engulfing President Trump would delay the president’s introduction of pro-growth economic agenda, which includes tax reform, deregulation and infrastructure spending.

European Central Bank chief Mario Draghi reiterated that accommodative monetary policy remains necessary despite an uptick in inflation and economic growth.

“For domestic price pressures to strengthen, we still need very accommodative financing conditions, which are themselves dependent on a fairly substantial amount of monetary accommodation.” Draghi said.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Forex News

Leave a Reply

Your email address will not be published. Required fields are marked *