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Forex - Aussie up ahead of Caixin flash PMI October estimate

Published 10/22/2015, 08:37 PM
Updated 10/22/2015, 08:42 PM
Aussie up ahead of Caixin flash PMI
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Investing.com - The Aussie rose in early Asia on Friday as investors focused on an initial reading of China manufacturing this month for direction.

AUD/USD rose 0.10% to 0.7215. The Aussie's fortunes are closely linked to commodity trade with China. USD/JPY traded at 120.87, up 0.14%.

The Caixin Manufacturing index flash estimate is due with for October, with the final September reading at 47.2.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, gained 0.14% to 96.57.

Overnight, the dollar climbed against the other major currencies on Thursday, as dovish comments by European Central Bank President Mario Draghi continued to dominate investors' attention.

The single currency was hit after ECB President Mario Draghi said it will "reexamine" its monetary policy in December, hinting at the possibility for further easing measures.

Speaking at the ECB's monthly press conference, Draghi added that the ECB's quantitative easing program is set to run until 2016 or beyond if necessary.

Draghi also said that downside risks have emerged for growth and the inflation outlook in the euro area.

The comments came shortly after the ECB said it was maintaining its benchmark interest rate at a record-low 0.05%, in line with market expectations.

In the U.S., the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 17 increased by 3,000 to 259,000 from the previous week’s total of 256,000. Analysts had expected jobless claims to rise by 9,000 to 265,000.

Separately, the U.S. National Association of Realtors said that existing home sales increased by 4.7% to 5.55 million units last month from 5.30 million in August. Analysts had expected existing home sales to rise 1.4% to 5.38 million units in September.

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