Kiwi Dollar Pressured by China News

By: DailyForex.com

China’s weak data had a one-two punch on the Forex market, with commodity-currencies suffering alongside the drive higher for safe haven pairs. China’s Manufacturing PMI reports were a mixed bad for the most part, with very little positive sentiment for a single report which managed to edge slightly higher. Overall, the outlook looks dismal with manufacturing continuing to contract in China, with readings on the manufacturing PMIs below the 50.0 threshold which separates contraction from expansion. The only “bright” spot was the 48.4 reading, slightly above expectations of 48.0, for the Caixin Manufacturing Report, yet still well into contractionary territory.

As reported at 11:16 am (GMT) in London, the NZD/USD pair was trading at $0.6468, down 0.16%. The USD/CAD pair was trading C$1.4031, a gain of 0.31% for the greenback; the pair ranged from C$1.3971 to C$1.4058.

Markets Look Ahead to RBA Decision

The Australian Dollar had also been under pressure after the Chinese data release however the upcoming policy decision may be helping to steady the Aussie. Tomorrow, the Reserve Bank of Australia announces its monetary policy decision, and expectations are high that the Governor will hold the line at the current 2% cash rate. Equally important, however, is the RBA’s outlook and for that Forex traders will wait to see what Governor Glenn Steven’s foresees for Australia’s economic future in light of the growth slowdown in China, its largest trading partner. The AUD/USD is currently higher at $0.7071, a gain of 0.41%, moving away from the session trough at $0.7043, likely a knee jerk reaction to the Chinese PMI data.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.