US dollar index resumed its downside falling from cap at 79.35 to new 8-month low at 79.05 early on Thursday. Yesterday, risk appetite got hurt by Chinese banks substantial increase in bad debt write-off with the
greenback overall rising against its major counterparties. However, today Chinese HSBC Flash Manufacturing PMI was released and stood at 50.9 for October, higher than anticipated and above September’s 50.2 figure, easing concerns over China’s growth.
Furthermore, risk on China credit market is still in place and is a key driver for the following trading as money-market rates jumped on yesterday risk aversion, with investors concerned that China’s central bank may be initiating a liquidity squeeze in order to contain asset price bubbles and the shadow banking system.
The
Australian dollar versus the
greenback took the chance from stronger CNY Manufacturing PMI and recovered from support at 0.9607 to 0.9669, since Australia’s largest trade partner is China and thus closely impacted by its performance. The Australian equity index S&P/ASX 200 advanced by 0.31% to 5372.90 as risk appetite was somewhat recovered.
Elsewhere, the
greenback against the
Japanese Yen drew support line at 97.15 and climbed back to 97.58 in recent trading, fluctuating mainly in 97.58/97.15 narrow sideways zone. With the
US dollar under selling pressure as the asset tapering is moved on to March 2014 and concerns mount regarding US economic performance in 2013,when the risk appetite improves the
USDJPY extends into sideways. Although overall we would expect the pair to continue its weakness and likely to test key support at 96.50.
In addition, yesterday the Bank of Canada decided to maintain its key rate unchanged at 1.0%. In its Monetary Policy Report the BoC was less optimistic about its growth forecast for 2013, downgrading it to 1.6% for 2013 while expecting a 2.3% for 2014 and 2.6% for 2015 with inflation likely to hit its 2% target by end of 2015. Thus, the
Canadian weakened against the
US dollar with the
USDCAD surging to 1.0390 but likely to be weighed by cap at 1.04 and resume its downside.
Por ultimo, observamos os prognosticos de relatorios de PMI de European Manufacturing, tambem tendo em conta a cúpula economica de Eurozona. Mais tarde hoje esperamos os dados comerciais de EUA, primeiramente de PMI US Manufacturing e dados das vendas de viviendas, finalmente a meia-noite EUA Japão vai anunciar os dados de CPI para Setembro.
