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Forex - Australian dollar weaker ahead of HSBC China flash PMI

Published 06/22/2014, 07:21 PM
Updated 06/22/2014, 07:23 PM
Australian dollar weaker
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Investing.com - The Australian dollar held weaker in Asia on early Monday ahead of flash manufacturing data from China.

The June preliminary reading of the HSBC manufacturing index for China is due at 0945 Beijing time, or 0145 GMT, with 49.7 exepcted, a slight gain from the previous month's 49.4.

AUD/USD held at 0.9386, down 0.04%, ahead of the survey closely watched because China is a top destination for key Australian exports such as iron ore.

BoJ Governor Haruhiko Kuroda is also scheduled to speak at an event in Tokyo later in the day.

USD/JPY traded flat at 102.09.

Last week, the dollar ended the week lower against a basket of other major currencies despite small gains on Friday, after the Federal Reserve indicated earlier in the week that rates are likely to remain on hold for some time.

The greenback weakened broadly after the Fed gave no indication of when interest rates could start to rise at the conclusion of its two-day meeting on Wednesday. In addition, the Fed’s forecast of where interest rates might reach in the long term fell from 4% to 3.75%.

The Fed acknowledged the recent increases in inflation and drop in unemployment, but Chair Janet Yellen said no formula was in place for when interest rates would start to rise.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.04% to 80.44.

In the coming week, the U.S. is to release data on consumer confidence, durable goods orders and home sales. Preliminary data on manufacturing activity from China and flash estimates on euro zone private sector activity will also be closely watched.

On Monday, the euro zone is to release data on manufacturing and service sector activity, while Germany and France are to release individual reports.

The U.S. is to release preliminary data on manufacturing activity and private sector data on existing home sales.

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