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1 Apr 2015
Risk-off Asia, EZ-UK PMIs to dominate
FXStreet (Mumbai) - The Antipodeans firmed in Asia posing a solid recovery, with the Australian dollar leading on all fronts. USD/JPY remained the laggard as the yen gained amid a generalized risk-off trading and broad USD weakness.
Key headlines in Asia
China HSBC PMI revised higher in March
Japan Tankan Large Manufacturing Index came in at 12, below expectations (14) in 1Q
Australia Building Permits (MoM) registered at -3.2% above expectations (-4%) in February
AUD/USD picks up bullish momentum after upbeat Chinese PMI
Dominating themes in Asia - centered on JPY, AUD, NZD
A busy Asian session with mixed economic releases in Aus Building consents data, Tankan manufacturing gauge and Chinese manufacturing PMI published. Besides, risk-off sentiment returned to markets amid looming Iran nuclear deal talks bolstering the yen and knocking-off Asian equities.
Correction in the greenback and upbeat Chinese PMI reading pushed AUD/USD higher towards 0.77 handle. While NZD/USD remained underpinned tracking gains in its Oz counterpart. USD/JPY witnessed massive sell-off on profit-taking and on increased safe-haven bids for yen.
Heading into Europe - centered on EUR, GBP
Euro zone manufacturing PMI and UK PMI readings to dominate the European session with markets expecting Euro zone final manufacturing PMI to come in at a ten-month high of 51.9 points suggested by a preliminary reading to be confirmed.
While final German manufacturing PMI is likely to remain unchanged at 52.4 in March from the previous month.
The manufacturing sector in the UK is expected to have recovered in March, after a disappointing performance in previous months. Purchasing Managers' Index indicator from the UK is expected to show a reading of 54.5 in March as compared to 54.1 points reflected in 54.1. The sector slowed in the last quarter of 2014, due to weaker exports, and had a lackluster start to 2015.
Analysts at Capital Economics noted, "The drop in the oil price should be starting to have a beneficial impact,"
Further, Senior UK Economist at RBS stated, “We expect the manufacturing and construction PMIs to broadly stabilize in March – at levels indicative of above-trend output growth, though the PMIs have had a tendency in recent years to over-estimate the ONS output data.”
Key headlines in Asia
China HSBC PMI revised higher in March
Japan Tankan Large Manufacturing Index came in at 12, below expectations (14) in 1Q
Australia Building Permits (MoM) registered at -3.2% above expectations (-4%) in February
AUD/USD picks up bullish momentum after upbeat Chinese PMI
Dominating themes in Asia - centered on JPY, AUD, NZD
A busy Asian session with mixed economic releases in Aus Building consents data, Tankan manufacturing gauge and Chinese manufacturing PMI published. Besides, risk-off sentiment returned to markets amid looming Iran nuclear deal talks bolstering the yen and knocking-off Asian equities.
Correction in the greenback and upbeat Chinese PMI reading pushed AUD/USD higher towards 0.77 handle. While NZD/USD remained underpinned tracking gains in its Oz counterpart. USD/JPY witnessed massive sell-off on profit-taking and on increased safe-haven bids for yen.
Heading into Europe - centered on EUR, GBP
Euro zone manufacturing PMI and UK PMI readings to dominate the European session with markets expecting Euro zone final manufacturing PMI to come in at a ten-month high of 51.9 points suggested by a preliminary reading to be confirmed.
While final German manufacturing PMI is likely to remain unchanged at 52.4 in March from the previous month.
The manufacturing sector in the UK is expected to have recovered in March, after a disappointing performance in previous months. Purchasing Managers' Index indicator from the UK is expected to show a reading of 54.5 in March as compared to 54.1 points reflected in 54.1. The sector slowed in the last quarter of 2014, due to weaker exports, and had a lackluster start to 2015.
Analysts at Capital Economics noted, "The drop in the oil price should be starting to have a beneficial impact,"
Further, Senior UK Economist at RBS stated, “We expect the manufacturing and construction PMIs to broadly stabilize in March – at levels indicative of above-trend output growth, though the PMIs have had a tendency in recent years to over-estimate the ONS output data.”