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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in US 500 are at opposite extremes with 68.42%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5qXbmhK4TF
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.01% 🇨🇭CHF: -0.05% 🇪🇺EUR: -0.08% 🇨🇦CAD: -0.18% 🇳🇿NZD: -0.22% 🇦🇺AUD: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/q1uXEuBA1M
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.08% Germany 30: -0.06% France 40: -0.14% Wall Street: -0.52% US 500: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/bCGarAMjGk
  • Want to make trading decisions with confidence? Download you free guide to avoid hesitations in your trading decisions.https://t.co/00I3lH90OD #DailyFXGuides https://t.co/LEzeGkMlO6
  • Market Snapshot: Anti-risk USD and JPY outperforming Growth-linked Australian, New Zealand and Canadian Dollars underperforming Wall Street futures extending losses during Tuesday APAC trade Nikkei 225 (-1.0%), Hang Seng (-2.4%), Shanghai Composite (-1.2%) [delayed] -BBG
  • Gold and silver prices may continue to rise in the coming months on the back of falling real rates of return and the prospect of additional fiscal support under a Biden administration. Get your market update from @DanielGMoss here:https://t.co/OMNoNHn2vZ https://t.co/FyyPehAlJh
  • Thai Debt Chief Rules Out Additional Stimulus Borrowing For Now - BBG
  • The #HSI Hang Seng Index tumbled 2.5% as profit-taking kicked in among tech stocks: - Tencent (-5.94%) - Alibaba (-1.86%) - Meituan (-6.35%) - Xiaomi (-1.64%)
  • Will the Swiss Franc find reprieve after recent losses against the Canadian and New Zealand Dollars as NZD/CHF and CAD/CHF uptrends face key chart barriers? Find out from @FxWestwater here:https://t.co/c89gcaNhTt https://t.co/egDQcTpU87
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Gold: 0.24% Silver: 0.19% Oil - US Crude: -0.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/iLfFHRMJGq
AUD/USD Torpid Despite Robust Chinese PMI Dump

AUD/USD Torpid Despite Robust Chinese PMI Dump

David Cottle, Analyst

Talking Points:

  • The Australian Dollar didn’t get much help from better than expected Chinese PMI numbers for October
  • AUS/USD ticked up, but remains essentially where it was before
  • Perhaps the China proxy element of the AUD is playing second fiddle to Australian/US interest rate expectations

The Australian Dollar only manged to inch higher against its US cousin on Tuesday despite a raft of quite robust data out of China.

The official October Purchasing Managers index for the manufacturing sector came in at 51.2. That was well ahead of the 50.4 seen in September.

That index covers large, state-owned enterprises. But there was equally good news in a private survey of smaller firms. The Caixin manufacturing PMI was 51.2. That indicates the fastest pace of expansion since July 2014. It was better-than-expected too. Markets had been looking for a rise of 50.1.

Completing a trifecta of better news, the official non-manufacturing PMI was 54.0, up from 53.7 in September. (In the logic of PMIs any print above 50 signifies expansion in the sector.)

Recent data have suggested a degree of stabilization in the world's number-two economy, with annual growth of 6.7% in the second and third quarters. September’s producer prices increased for the first time in nearly five years.

However, this latest slew of quite robust numbers left the markets’ favourite liquid China proxy largely unmoved.

The Australian Dollar was at US$0.7603 before the numbers. It’s at $0.76099 at 0150GMT.

Of course, the AUD/USD pair isn’t only and always a China proxy, even if Australia’s strong export links to China mean it often is.

Sometimes it tells us about local Australian economics. At others it’s more a bet on what US interest rates will do.

That could be the case this time. The Aussie has failed to rise much above the $0.77 handle since last week’s local consumer price data indicated some stabilisation and seemed to make further Australian rate cuts less likely. There have also been increases in the prices of coal and iron ore Australia’s key exportsagain without much obvious Aussie-dollar lift.

However, with the markets still looking towards higher US rates by year end, the Aussie could simply be prey to the fact that, while things look bullish for it, they might well look more bullish for the US Dollar.

It’s probably also worth remembering that Tuesday is Melbourne Cup Day in Australia. Often described as the “horse race that stops a nation,” it’s possible that many Australian trading desks are more thinly staffed than they’d otherwise be.

Up but still capped by $0.77 (AUD/USD 30min chart)

AUD/USD Torpid Despite Robust Chinese PMI Dump

Chart created using TradingView

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

DISCLOSURES