Investing.com - Financial Markets Worldwide

Forex - NZD/USD plunges after China PMI data

Published 07/23/2013, 10:07 PM
NZD/USD
-
AUD/NZD
-
NZD/JPY
-

Investing.com - The New Zealand dollar tumbled against its U.S. rival during Wednesday’s Asian session, reversing a positive start to the day after data showed manufacturing activity in China slowed for a third consecutive month.

In Asian trading Wednesday, NZD/USD slid 0.40% to 0.7966. The pair was likely to find support at 0.7909, Monday's low and resistance at 0.8054, the high of June 19.

The kiwi sagged after the flash HSBC/Markit Purchasing Managers' Index fell to 47.7 for July. Last month, the HSBC PMI fell to a nine-month low of 48.2. Readings below 50 indicate contraction. The July reading is an 11-month low. The HSBC reading comes a week before the official government data.

The employment index fell to 47.3 in July, the lowest level since March 2009. That index has been below 50 for four straight months. The new orders sub-index fell to its lowest level in 11 months, and stayed below 50 for a third straight month. Output declined to 10-month low and remained in contraction for a second month, according to Reuters.

China posted second-quarter GDP growth of 7.5% and policymakers there have vowed not to let growth slip below 7% this year. Still, the second-quarter GDP reading was the ninth lower reading in the past 10 quarters.

The kiwi started the day in fine fashion against the greenback after New Zealand reported a June trade surplus of NZD414 million, far better than the NZD100 million analysts expected.

AUD/NZD fell 0.05% to 1.1619 after the Australian Bureau of Statistics said that consumer price inflation there was 0.4% in the second quarter. Analysts expected a reading of 0.5%. Australia’s trimmed mean CPI was 0.5% compared with 0.4% in the first quarter. The first-quarter reading was revised up from 0.3%. Analysts expected 0.5% for the second quarter.

NZD/JPY inched down 0.05% to 79.50. Earlier Wednesday, data showed Japan’s trade balance was in deficit for a 12th consecutive month. Japanese exports rose 7.4% last month, but that was below the 10.3% increase analysts expected.


Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.