AUD & NZD Boosted by China's Upbeat Manufacturing Data

The AUDUSD opens at 0.6821 (mid-rate) and the NZDUSD opens at 0.6505 (mid-rate) this morning.

Both the AUD and NZD surged higher yesterday afternoon after China’s upbeat manufacturing data revitalised risk appetite.

Following on from Sunday’s official survey, which revealed manufacturing activity in China had unexpectedly, and albeit modestly expanded for the first time since April, yesterday’s private survey run by Caixin and Markit showed activity expanded for the fourth consecutive month this time hitting a three-year high of 51.8.

The NZD was also boosted yesterday after Finance Minister Grant Robertson signalled the Government is about to announce a “significant” fiscal stimulus package. Adrian Orr has been calling for Government assistance for the past six-months and the prospect of an increased infrastructure spend will alleviate the pressure on the RBNZ to cut rates further.

In stark contrast this morning’s US purchasing managers index surprised economists by contracting for the fourth consecutive month and at a faster pace than expected in November. The data has release has pushed down both the USD and US equities.

Today, the RBA are widely expected to keep rates on hold at this afternoon’s meeting, with the accompanying statement set to dictate direction for the AUD.

Global equity markets are down sharply - Dow -0.78%, S&P 500 -0.82%, FTSE -0.82%, DAX -2.05%, CAC -2.01%, Nikkei -0.49%, Shanghai +0.13%

Gold prices are down 0.7% trading at $1,462 an ounce. WTI Crude Oil prices have rallied 1.6% to $56.05 a barrel.

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Australia Morning Update | New Zealand Morning Update