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.

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
More View more
Real Time News
  • RT @Live_News_Nick: #Bitcoin https://t.co/WD6Sb5lkc8
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.55% 🇳🇿NZD: 0.52% 🇨🇦CAD: 0.06% 🇨🇭CHF: 0.03% 🇪🇺EUR: 0.02% 🇯🇵JPY: -0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ZWwEzFX2bY
  • The S&P 500 closed out the week in style, making a clear break above trendline resistance. Eyes now shift to the bulk of earnings season $SPX $SPY $ES_F https://t.co/4igMPafh0q
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.20% Silver: -0.83% Gold: -1.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/iKG3lJuWba
  • RT @EricBalchunas: The deed is done. Home free… $BITO https://t.co/Qf3U9quSfy
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.71%, while traders in GBP/JPY are at opposite extremes with 79.19%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/OyMnOH8EOa
  • The past few weeks we have regularly mentioned that the SEC is likely to look kindly upon the few Bitcoin futures-based ETFs applications in its pending tray. Get your $btc market update from @nickcawley1 here:https://t.co/1XBRPL8IlD https://t.co/IKr70qAcDn
  • Gold prices are poised for a breakout in the days ahead as XAU/USD contracts into longer-term uptrend support. Get your weekly gold forecast from @MBForex here: https://t.co/nqPwZOLgEk https://t.co/rTWVRs1oJd
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.11% US 500: 0.77% France 40: 0.18% FTSE 100: 0.10% Germany 30: 0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/LMuIXZ9D6X
  • The main focus in the FX space has been the Japanese Yen which continues to go up in smoke across the board. Get your market update from @JMcQueenFX here:https://t.co/2G4zEG3B4t https://t.co/SSdJODy7dW
Australian Dollar Backtracks as China Caixin PMI Prints 5-Month Low

Australian Dollar Backtracks as China Caixin PMI Prints 5-Month Low

David Cottle, Analyst

Australian Dollar, China Caixin Manufacturing Purchasing Managers Index Talking Points:

  • The PMI came in at 51.1, above the 51.0 expected
  • Manufacturing activity clearly remains mired however
  • The Australian Dollar market is in any case focused on its home central bank

Join our analysts for live, interactive coverage of all major economic data at the DailyFX Webinars. We’d love to have you along.

The Australian Dollar slipped a little on Monday as a key measure of Chinese manufacturing output beat expectations but dropped to a five-month low nevertheless.

January’s Purchasing Managers Index from media group Caixn came in at 51.1, just a hair above the 51.0 print expected but below December’s 51.5. In the logic of PMI numbers any print above 50 signifies expansion for the sector, so this series remains in the green from that angle. However, this was also the lowest reading since August 2019.

Caixin’s indicator tracks China’s smaller, privately-held firms’ performance and acts as a compliment to the official PMI series released earlier. There large, state-linked companies dominate. It came in at exactly 50 for January and, with the Caixin data, add to the perception that Chinese growth remains tepid at best as the economy heads into 2020, with the coronavirus outbreak likely to act as a considerable break on growth ahead, even if its consequences do fall short of some more dire predictions.

The Australian Dollar can act as the markets’ favourite liquid China proxy thanks to Australia’s export links to the world’s second-largest economy. It did so to some extent on Monday, retreating a little after the numbers. Chinese stock markets plunged early, in a delayed reaction to the outbreak which came as that country celebrated its extended new year break.

Australian Dollar Vs US Dollar, 5-Minute Chart.

The Aussoe has already come under broad pressure as the viral outbreak magnified a general retreat from growth sensitive assets as 2020 got under way. Such risk correlated assets may now be stabilizing a little after very sharp falls, but they will remain vulnerable to virus news headlines.

Australian Dollar Vs US Dollar, Daily Chart

The market is also looking to the Reserve Bank of Australia’s first monetary policy decision of the year. That’s coming up on Tuesday with the chances of any reduction in the record low 0.75% Official Cash Rate judged to have receded quite markedly in the face of quite upbeat employment and inflation headlines.

In fact, there were unsettling details behind both encouraging headlines, with part-time job creation utterly dominant and underlying pricing power utterly absent. Even so, the markets believe that the Australian economy has done enough to put off lower interest rates until at least April, according to a survey from Reuters.

Australian Dollar Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

https://www.dailyfx.com/free_guide-tg.html?ref-author=Cottle.

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

DISCLOSURES