MNI China Daily Summary: Monday, November 4

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MNI: EUROZONE OCT FINAL MANUF PMI 46.0 (FLASH 45.9); SEP 45.0

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MNI: GERMANY OCT FINAL MANUF PMI 43.0 (FLASH 42.6); SEP 40.6

MNI: FRANCE OCT FINAL MANUF PMI 44.5 (FLASH 44.5); SEP 44.6

MNI: ITALY OCT FINAL MANUF PMI 46.9 (FCST 48.5); SEP 48.3

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

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AUD: A$ Eyeing Fresh Test Above 0.6900, AUD/JPY Close To 200-day MA Resistance

AUD
RegionGlobalBulletAPACForeign Exchange BulletsAustraliaMarkets

AUD/USD holds just short of recent highs in early Friday dealings, the pair just under 0.6900. China optimism aided outperformance for the A$ through Thursday trade. A clean break above 0.6900 could 0.6984 targeted, a projection level of the Ag-Sep price swings. Note the Feb 12 2023 high was 0.7029. The Sep 23 low is back under 0.6800, while the 20-day EMA is further south at 0.6764. 

  • Notably AUD supports came from the China equity bounce, with onshore markets up over 4%, while the Golden Dragon index surged nearly 11% in US trade on Thursday.  
  • Sentiment was clearly positive in the metal commodity space, with copper up 3% (CMX basis), while iron ore rose over 2% and is back above the $100/ton level.
  • The China stimulus measures are aimed at fiscal issuance to boost consumption and aid the poor, while fresh capital injections into local banks is also under consideration.
  • Elsewhere, the rise in short end US yields amid better than expected data, did little to dent AUD sentiment. Indeed, it likely helped AUD/JPY push higher, with the pair back close to 100.00, which is near the simple 200-day MA resistance point.
  • The local data calendar is empty until next week. 
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AUD/USD holds just short of recent highs in early Friday dealings, the pair just under 0.6900. China optimism aided outperformance for the A$ through Thursday trade. A clean break above 0.6900 could 0.6984 targeted, a projection level of the Ag-Sep price swings. Note the Feb 12 2023 high was 0.7029. The Sep 23 low is back under 0.6800, while the 20-day EMA is further south at 0.6764. 

  • Notably AUD supports came from the China equity bounce, with onshore markets up over 4%, while the Golden Dragon index surged nearly 11% in US trade on Thursday.  
  • Sentiment was clearly positive in the metal commodity space, with copper up 3% (CMX basis), while iron ore rose over 2% and is back above the $100/ton level.
  • The China stimulus measures are aimed at fiscal issuance to boost consumption and aid the poor, while fresh capital injections into local banks is also under consideration.
  • Elsewhere, the rise in short end US yields amid better than expected data, did little to dent AUD sentiment. Indeed, it likely helped AUD/JPY push higher, with the pair back close to 100.00, which is near the simple 200-day MA resistance point.
  • The local data calendar is empty until next week.