Free Trial

Chinese Data Tip Balance Against Riskier FX

FOREX

Major crosses hugged tight ranges in Asia, with riskier currencies facing some downward pressure. The yuan took a mild hit in reaction to a miss in China's Caixin M'fing PMI, which is skewed towards smaller firms and exporters. The underwhelming print came on the heels of a miss in the official counterpart released over the weekend. The data suggested that recovery in China's manufacturing sector is plateauing, which weighed on riskier currencies, even as most Asia-Pac equity benchmarks advanced.

  • High-beta G10 FX went offered as regional participants digested Chinese data, while the raging Covid-19 outbreak in Southeast Asia helped further dent sentiment. NOK was the worst performer as crude oil turned its tail.
  • Softer oil and disappointing Chinese data pressured the Antipodeans, with liquidity limited by a bank holiday in Australia. Domestic risks were eyed on both sides of the Tasman, with RBA monetary policy decision coming up tomorrow, ahead of New Zealand's jobs data due the following day.
  • PMI data deluge steals the limelight today, while G20 central bank speaker slate is virtually empty.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.