Investing.com - The Australian dollar traded higher against its U.S. rival during Monday’s Asian session after a reading of the HSBC flash Purchasing Managers' Index indicated China’s economy continues to gain steam.
In Asian trading Monday, AUD/USD rose 0.21% to 0.9418. The pair is likely to find support at 0.9286, the low from September 17 and resistance at 0.9528, Wednesday’s high a three-month high.
The HSBC flash Purchasing Managers' Index jumped to a six-month high of 51.2 in September from 50.2 last month. The manufacturing survey is focused more on small and medium-sized companies.
""We expect a more sustained recovery as the further filtering-through of fine-tuning measures should lift domestic demand. This will create more favorable conditions to push forward reforms, which should in turn boost mid- and long-term growth outlooks," said Hongbin Qu, chief China economist at HSBC.
Readings above 50 indicate expansion. The final reading from HSBC and Markit will be released on September 30 while the Chinese government releases its reading a day later. The Flash PMI from HSBC and Markit is based on 85 percent to 90 percent of responses to surveys sent to more than 420 manufacturers, according to Bloomberg.
China is Australia’s largest export market. As such, the Aussie and Australian stocks are sensitive to Chinese data points.
Last week, minutes from the Reserve Bank of Australia’s September 3 policy meeting showed that the central bank retains the option of reducing interest rates and said a further drop in the Australian dollar would help the economy.
Elsewhere, AUD/JPY fell 0.05% to 93.33 while AUD/NZD rose 0.19% to 1.1261.
In Asian trading Monday, AUD/USD rose 0.21% to 0.9418. The pair is likely to find support at 0.9286, the low from September 17 and resistance at 0.9528, Wednesday’s high a three-month high.
The HSBC flash Purchasing Managers' Index jumped to a six-month high of 51.2 in September from 50.2 last month. The manufacturing survey is focused more on small and medium-sized companies.
""We expect a more sustained recovery as the further filtering-through of fine-tuning measures should lift domestic demand. This will create more favorable conditions to push forward reforms, which should in turn boost mid- and long-term growth outlooks," said Hongbin Qu, chief China economist at HSBC.
Readings above 50 indicate expansion. The final reading from HSBC and Markit will be released on September 30 while the Chinese government releases its reading a day later. The Flash PMI from HSBC and Markit is based on 85 percent to 90 percent of responses to surveys sent to more than 420 manufacturers, according to Bloomberg.
China is Australia’s largest export market. As such, the Aussie and Australian stocks are sensitive to Chinese data points.
Last week, minutes from the Reserve Bank of Australia’s September 3 policy meeting showed that the central bank retains the option of reducing interest rates and said a further drop in the Australian dollar would help the economy.
Elsewhere, AUD/JPY fell 0.05% to 93.33 while AUD/NZD rose 0.19% to 1.1261.