Chinese PMI Came Out Better than Expected - APAC Update

Xe Corporate APAC

March 31, 2019 3 min read

The AUDUSD opens higher at 0.7118, and the NZDUSD opens higher at 0.6829 this morning.

RBNZ Governor Adrian Orr welcomed the weaker NZD during a speech on Friday, after he surprised the market earlier in the week by announcing an interest rate easing bias. The next RBNZ OCR meeting is 8th May and where some forecasters are picking rates could be cut by 0.25%.

The USD eased Friday night, dragging the NZDUSD higher, on tepid US economic data.The USD dipped on weaker-than-expected US inflation data, disappointing personal spending and income figures, and weak manufacturing numbers – adding to fears the US economy is looking steam. However, it wasn’t all bad with consumer sentiment and new homes sales data beating forecasts.

China Data

Chinese manufacturing data (50.5 vs 49.2), released Sunday, exceed analysts’ forecasts, with the manufacturing PMI (purchasing managers’ index) posting its biggest increase since 2012. This is a signal the world’s second-largest economy is stabilising anda positive sign for the global economy and commodity exporters such as NZ & Australia and their currencies.

Brexit Update

Brexit drama continues unabated and the GBP plunged lower after UK lawmakers rejected Prime Minister Theresa May’s breakup deal for a 3rd time. The Brexit uncertainty is weighing on the GBP and British economy.

Global equity markets were higher on the day, with the Shanghai Composite index being the standout performer screaming 3.2% higher - Dow +0.8%, S&P 500 +0.7%, FTSE +0.6%, DAX +0.9%, CAC +1.0%, Nikkei +0.8%, Shanghai +3.2%. Gold prices were little changed at USD$1,291 an ounce as the USD rallied. WTI Crude Oil prices surged 1.7% to US$60.22 per barrel.

Mid-market Rates

AUDUSD0.71180.6%NZDUSD0.68290.7%AUDEUR0.63350.5%NZDEUR0.60780.6%AUDGBP0.54580.7%NZDGBP0.52370.8%AUDJPY78.991.0%NZDJPY75.791.0%AUDNZD1.04200.0%NZDAUD0.95950.1%GBPAUD1.8322-0.7%NZDCAD0.9112-0.1% GBPNZD1.9095-0.8%
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