Forex - Aussie jumps on HSBC China PMI, regional data and survey results

Investing.com - The Aussie jumped and the yen gained against the dollar in Asia on Wednesday as economic data and survey sets from Australia, China and Japan painted a modestly solid picture of economic recovery.

AUD/USD traded at 0.7640, up 0.47%, while USD/JPY changed hands at 119.61, down 0.44%. EUR/USD traded at 1.0773, up 0.33%.

The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, was quoted at 98.39 in early Asia, down 0.31%.

A busy start to the second quarter with Australia releasing the AI Group Manufacturing Index for March that showed a 0.9 point gain to 46.3. In February the index gave back 3.6 points just when it looked set to capture the 50.0 mark.

Manufacturing is getting a boost from a fall in the exchange rate, but headwinds continue from other directions preventing the index from rising into expansion.

In the latest month manufacturers noted the further drop in mining construction, the progressive closure of motor-vehicle assembly and subdued local business investment in equipment.

In Japan, the first quarter Tankan business survey showed plus-15, below the expected at plus-16, but, up from plus-12 in December for the first rise in two quarters.

Australia February building approvals fell 3.2% month-on-month, less than the 4.0% month-on-month fall expected after a 7.9% gain in January.

Later, the RBA's March Commodity Price Index is due at 1630 (0530 GMT) which showed a 2.7% month-on-month fall in February and 20.6% in year-on-year terms.

In China, the March CFLP manufacturing and services PMI rose to 50.1, better than the dip to 49.7 expected and up from February's 49.9.

The HSBC (LONDON:LONDON:HSBA) final PMI for March clocked in at 49.6, better than the 49.3 expected. Investors were shaken by the flash reading showing a surprising fall to 49.2 from February's final 50.7, with slack domestic demand taking the blame.

Overnight, the U.S. dollar posted its strongest daily gain against the euro in more than 10 days, amid strong consumer sentiment and a lack of progress in negotiations between Greece and its euro zone creditors.

Currency traders, meanwhile, await a potential deal regarding the destabilization of the Iranian nuclear program, after the White House announced it could extend the deadline with Iran into Wednesday if negotiations remained productive.

The dollar continued to edge upward on Tuesday after the release of strong consumer data. The Conference Board, a private research group, said its Consumer Confidence Index increased to 101.3 in March, up from a revised level of 98.8 in February. In a survey with the Wall Street Journal, economists had expected the index to tick up to 96.8 for the month.

In addition, consumer expectations for economic activity over the next six months of 2015 surged to 96.0, up from a revised level of 90.0. Economists had predicted that the level would fall to 87.2 for the month.

In Europe, officials from the European Union and International Monetary Fund (IMF) described a set of austerity measures submitted by Greece at the end of last week as a list of ideas rather than a concrete plan. Greece's creditors have deemed the reforms necessary in order to unlock critical financial aid. The two sides reportedly remain far apart on critical issues such as Greek pension reform and debt relief.

Greece is running out of time before a €450 mil payment is due to the IMF next week.