2 Jun 2014
Asia Recap: Aussie heavy on Aus building permits
FXStreet (Bali) - The Aussie was the under-performer in Asia, erasing by half the gains seen against the US Dollar last week, while the Yen also displayed weakness.
AUD/USD opened the session at 0.9305, barely unchanged from the NY closing level, despite an improved Chinese official PMI over the weekend. After a tepid attempt to bounce, the pair was sold-off over 35 pips following a disastrous building permits print, which fell by 5.6% vs +1.6% expected, resulting on a slide to 0.9262, session low, ahead of Tuesday's RBA.
USD/JPY saw the exchange rate strengthen right from the get-go, with the opening of the Tokyo market creating the momentum needed to re-take 102.00, setting its highest at 102.08 before consolidating. Solid gains in the Nikkei 225, up by 2% ahead of the close, was a key factor weighing on the weakening Yen. On the fundamental front, the Nomura/ JMMA Manufacturing PMI in Japan came unchanged at 49.9, although the main focal points continues to be on the GPFI portfolio readjustments, with talk growing about increased allocations in foreign assets.
NZD/USD traded in a consolidation pattern, with activity subdued due to the closure of the NZ markets - Queen's Birthday -, resulting in a modest .85-.8475 range. The rest of G10 currencies, meanwhile, did also respect their familiar levels ahead of the European open.
Main headlines in Asia
China's PMI at a 5−month high
Australian PMI improves, still in contraction territory
Australian building permits for April plummet
Australia TD Securities Inflation (MoM) fell from previous 0.4% to 0.3% in May
Spain plans to announce economic stimulus package
Japan Nomura/ JMMA Manufacturing Purchasing Manager Index climbed from previous 49.4 to 49.9 in May
RBA: Verbal campaign against high AUD may resume - RBS
How aggressive will Japan be on GPIF portfolio adjustments?
AUD/USD opened the session at 0.9305, barely unchanged from the NY closing level, despite an improved Chinese official PMI over the weekend. After a tepid attempt to bounce, the pair was sold-off over 35 pips following a disastrous building permits print, which fell by 5.6% vs +1.6% expected, resulting on a slide to 0.9262, session low, ahead of Tuesday's RBA.
USD/JPY saw the exchange rate strengthen right from the get-go, with the opening of the Tokyo market creating the momentum needed to re-take 102.00, setting its highest at 102.08 before consolidating. Solid gains in the Nikkei 225, up by 2% ahead of the close, was a key factor weighing on the weakening Yen. On the fundamental front, the Nomura/ JMMA Manufacturing PMI in Japan came unchanged at 49.9, although the main focal points continues to be on the GPFI portfolio readjustments, with talk growing about increased allocations in foreign assets.
NZD/USD traded in a consolidation pattern, with activity subdued due to the closure of the NZ markets - Queen's Birthday -, resulting in a modest .85-.8475 range. The rest of G10 currencies, meanwhile, did also respect their familiar levels ahead of the European open.
Main headlines in Asia
China's PMI at a 5−month high
Australian PMI improves, still in contraction territory
Australian building permits for April plummet
Australia TD Securities Inflation (MoM) fell from previous 0.4% to 0.3% in May
Spain plans to announce economic stimulus package
Japan Nomura/ JMMA Manufacturing Purchasing Manager Index climbed from previous 49.4 to 49.9 in May
RBA: Verbal campaign against high AUD may resume - RBS
How aggressive will Japan be on GPIF portfolio adjustments?