Yuan Gains on China PMI Data, Aussie Dollar Falls on Stevens Comments
- Chinese Non-manufacturing PMI comes in at 55 for June; Prior month was 55.5
- HSBC China services PMI numbers in at 53.1 for June; 50.7 for month before
- HSBC China composite PMI revealed to be 52.4 for June; 50.2 for last month
The Chinese Yuan appreciated against the US Dollar as PMI figures for the Non-manufacturing segments of the economy were revealed. Non-manufacturing PMI came in at 55 for the month of June, an expansion that was at a slightly slower pace than last month’s 55.5. However, PMI data from HSBC reflected a much stronger expansion in these segments from last month. Services PMI came in at 53.1 for June, higher than the 50.7 for May. The Composite PMI was revealed to be 52.4, again greater than prior month’s 50.2.
These numbers report a stronger expansion in Chinese services from prior months, and may be the reason the Yuan appreciated against the US Dollar. Its Australian counterpart, however, failed to strengthen on the backdrop of strong Chinese numbers. China is Australia’s largest trading partner and an expansion in China bodes well for Australian exports and consequently the country’s currency. The Aussie Dollar on the contrary depreciated, most likely because of comments made by Reserve Bank of Australia Governor Glenn Stevens. Governor Stevens said that the recent GDP data was an overestimate of true pace of growth in the economy and that by most measurements, the Australian Dollar was overvalued.
USDCHN [15 mins]. Chart created using FXCM MarketScope.
AUDUSD [5 mins]. Chart created using FXCM MarketScope.
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