1 Aug 2013
All eyes on China as PMI manufacturing draws focus
FXstreet.com (New York) - With the FOMC firmly in tow and markets having digested the fallout of the interest rate decision and earlier Q2 GDP figures in the United States, the paramount focus shifts to the looming Chinese NBS PMI figure Thursday.
Investors await snapshot of Chinese economy
With arguably the biggest boon or bust prospect towards FX markets this week, the latest July PMI figure will be instrumental towards dictating short-term global sentiment. Also in the crosshairs are the fortunes of commodities, and specifically industrial metals, which have experienced acute levels of headwinds as of late – a surprise disappointment in particular, could instigate an upheaval that has the potential to permeate more than just the Asian bloc. While last months figure came at 50.1 – indicating a marginal rate of expansion – it bears notice the thin margin of growth that investors are prepared to tolerate.
Achilles heel of AUD?
The past few days have seen the AUD deteriorate across the board, initially propagated by the RBA, having now witnessed a tumble of the AUD/USD below the 0.9000 for the first time since 2010. Ultimately, the AUD probably stands the most to lose, as a downtrodden result in China would undoubtedly create waves in the antipodean stalwart. Perhaps as a sign to come, Chinese equity markets – long linked to the AUD - traded meekly Wednesday, exercising caution at the close.
Industrial metals feeling the heat
With much of the worlds construction and manufacturing tied up within its borders, it stands as no surprise that sour, or by extension upbeat PMI data in China will no doubt impact base and industrial metals, in particular copper, which has already had a rough summer. Copper prices are steadfastly approaching recent lows, with prices trading in the red into this morning’s release.
Investors await snapshot of Chinese economy
With arguably the biggest boon or bust prospect towards FX markets this week, the latest July PMI figure will be instrumental towards dictating short-term global sentiment. Also in the crosshairs are the fortunes of commodities, and specifically industrial metals, which have experienced acute levels of headwinds as of late – a surprise disappointment in particular, could instigate an upheaval that has the potential to permeate more than just the Asian bloc. While last months figure came at 50.1 – indicating a marginal rate of expansion – it bears notice the thin margin of growth that investors are prepared to tolerate.
Achilles heel of AUD?
The past few days have seen the AUD deteriorate across the board, initially propagated by the RBA, having now witnessed a tumble of the AUD/USD below the 0.9000 for the first time since 2010. Ultimately, the AUD probably stands the most to lose, as a downtrodden result in China would undoubtedly create waves in the antipodean stalwart. Perhaps as a sign to come, Chinese equity markets – long linked to the AUD - traded meekly Wednesday, exercising caution at the close.
Industrial metals feeling the heat
With much of the worlds construction and manufacturing tied up within its borders, it stands as no surprise that sour, or by extension upbeat PMI data in China will no doubt impact base and industrial metals, in particular copper, which has already had a rough summer. Copper prices are steadfastly approaching recent lows, with prices trading in the red into this morning’s release.