Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Aussie, Kiwi Dollars Rise on Chinese PMI Data and Risk Appetite

Aussie, Kiwi Dollars Rise on Chinese PMI Data and Risk Appetite

Talking Points:

  • Aussie, Kiwi Dollars Rise on Swelling Risk Appetite and Chinese PMI Report
  • US Dollar May Fall if Second Day of Yellen Testimony Dents Rates Outlook
  • See Economic Releases Directly on Your Charts with the DailyFX News App

The Australian and New Zealand Dollars outperformed in overnight trade, rising as much as 0.5 and 0.4 percent, as stocks advanced in Asian trade and drove demand for the sentiment-linked currencies. The MSCI Asia Pacific regional benchmark stock index rose 0.3 percent, following an ascent on Wall Street. The news-wires pinned the move as a response to testimony from Fed Chair Janet Yellen earlier in the day, suggesting investors took solace in the central bank chief’s view that baseline borrowing costs won’t rise for the next “couple of [FOMC] meetings”.

Upbeat Chinese economic data offered the Aussie and the Kiwi an added boost: the HSBC Manufacturing PMI gauge unexpectedly rose to 50.1 in February, showing factory sector activity grew for the first time in four months. China is Australia and New Zealand’s largest trading partner (aside from each other), so a pickup in performance there is often seen as boosting the two Oceanic countries’ growth prospects. That in turn limits the perceived scope for RBA and RBNZ rate cuts, driving the currencies upward.

The economic calendar is relatively quiet in European trading hours, with investors likely to look ahead toward another round of testimony from Chair Yellen for direction cues. Having spoken to members of the US Senate yesterday, she will now go through the same exercise with an analogous group of officials in the House of Representatives. While Yellen’s prepared remarks are likely to remain unchanged, investors will keenly monitor the Q&A portion of the outing for any new insights. Rhetoric fueling speculation about a protracted delay in starting to tighten monetary policy is likely to weigh on the US Dollar.


Asia Session

23:40NZDRBNZ’s Wheeler at Finance Select Committee---
0:00AUDSkilled Vacancies (MoM) (JAN)0.7%-0.4%
0:30AUDConstruction Work Done (QoQ) (4Q)-0.2%-1.0%-2.8%
0:30AUDWage Cost Index (QoQ) (4Q)0.6%0.6%0.6%
0:30AUDWage Cost Index (YoY) (4Q)2.5%2.5%2.6%
1:45CNYHSBC Manufacturing PMI (FEB P)50.149.549.7
1:45CNYWestpac-MNI Consumer Sentiment (FEB)112.0-112.1

European Session

7:00CHFUBS Consumption Indicator (JAN)-1.42Low
7:45CHFFrench Consumer Confidence (FEB)9190Low
9:30GBPBBA Loans for House Purchase3600035667Low
10:00GBPBOE’s Carney, Deputy Governors Speak--Medium
16:30EURECB’s Draghi Testifies to EU Parliament --Medium

Critical Levels

CCYSupp 3Supp 2Supp 1Pivot PointRes 1Res 2Res 3

--- Written by Ilya Spivak, Currency Strategist for

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.