- HSBC China Manufacturing PMI for July Comes in at 52.0 vs. 51.0 Expected, 50.7 Prior
- China’s Factory Sector Grew for 2nd Consecutive Month After a Soft First Half of 2014
- The Chinese Yuan (CNH) And The Australian Dollar Rose After the PMI Data Release
The Chinese Yuan and the Australian Dollar rose after HSBC released its primary manufacturing PMI data for China for the month of July. The figure, reported at 52.0, reflected a faster-than-expected expansion in the Chinese manufacturing sector. Recent surveys expected the figure to be 51.0, while prior month’s number was 50.7.
The Chinese Yuan and Australian Dollar likely rose because the PMI figures reported a significant improvement in China’s economy after a string of disappointing reports in the first half of the year. China is Australia’s largest trader partner and an expansion in China’s manufacturing sector bodes well for Australian exports, which in turn may boost overall growth and support a firmer RBA policy outlook. This comes as a further boost to the Australian Dollar after yesterday’s publication of higher-than-expected core CPI numbers for the month for the second quarter.
AUDUSD [15 mins 7/24/2014] Chart created using FXCM Marketscope