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Forex - Aussie up on China PMI manufacturing surveys that show expansion

Published 08/31/2016, 09:58 PM
Updated 08/31/2016, 09:59 PM
Aussie gains smartly
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Investing.com - The Aussie gained on better than expected manufacturing surveys from top trade partner China even as local data disappointed in a busy regional day.

AUD/USD traded at 0.7541, up 0.29%, while USD/JPY changed hands at 103.13, down 0.29%.

In China, the semi-official CFLP manufacturing PMI for August came in at 50.4, entering expansion territory and compared to the 49.9 level seen. The non-manufacturing PMI came in at 53.5, a tad weaker than the 53.9 previously. The Caixin manufacturing PMI for August came in at 50, just at expansion, but missing the expected 50.1 level seen and showing a dip from 50.6 the previous month.

Earlier in Australia, the AIG manufacturing index for August came in at 46.9, compared with a previous reading of 56.4. It was the lowest level since June last year, ending 13 straight months of expansion. The fall was mainly because of softening in the food and beverages sub-sector, which has been the strongest performer so far this year.

In Japan, the manufacturing PMI for August came in at 49.5, a dip below the 49.6 expected.

Also in Australia, private capital expenditure figures for the second quarter dropped 5.4%, more than the are expected decline of 4.2% quarter-on-quarter and at the same time retail sales for July were flat, missing a 0.3% month-on-month gain seen.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted down 0.07% at 95.94.

Overnight, the dollar was trading at three-week highs against the other major currencies on Wednesday, after a slew of positive U.S. data added to optimism over the strength of the economy and boosted expectations for a near-term rate hike.

The National Association of Realtors said pending home sales rose 1.3% last month, beating expectations for an increase of 0.6%.

Pending home sales fell 0.8% in June, whose figure was revised down from a previously reported gain of 0.2%.

In addition, U.S. payroll processing firm ADP said nonfarm private employment rose by 177,000 last month, surpassing expectations for an increase of 175,000.

The economy created 194,000 jobs in July, whose figure was revised from a previously reported increase of 179,000.

The data came a day after Fed Vice Chairman Stanley Fischer said the U.S. labor market is almost at full strength and the pace of interest rate increases will be data dependent.

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