HKD Falls Despite Optimistic PMI Data
• HKD Falls As PMI Data Signals Expansion.
• Growth Stems From New Orders But Uncertainty Looms As Growth Slows On The Mainland.
The HKD fell despite the optimistic HSBC Hong Kong Purchasing Managers Index (PMI) figures released today at 2:30 GMT. The HSBC PMI increased from 48.8 percent in November of 2014 to a staggering 50.3 percent in December 2014, signaling an improvement in the overall business conditions as well as manufacturing sector. The increase and the reading above 50 percent signaled an expansion for the first time in 5 months.
The Hong Kong economy ended the year on a brighter note, with growth stemming from new orders expanding for the first time in 7 consecutive months. However, tensions between the Occupy Central movement and weak economic data from the Mainland continue to loom, as uncertainty over the economic health of Hong Kong persists, possibly resulting in a weaker HKD.
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