020 7898 0500Weak Chinese Factory Output data (the official Purchasing Managers’ Index (PMI) manufacturing survey) on Tuesday fell below analysts’ expectations at 49.4 (compared to the anticipated 49.6), which is expected to impact the Australian and New Zealand dollars in the long run. This was a sixth consecutive month where Chinese output has shrunk, and forecasters feel this is going to weigh negatively on the export driven countries of Australia and New Zealand. Also, the consistently declining oil prices and concerns about the state of the global economy are still deteriorating sentiment for the commodity driven currencies.
In other news, as the Bank of Japan (BoJ) unexpectedly slashed interest rates last week in a bid to encourage lending, and this move continues to cause volatility for many currency exchange rates – including the euro, sterling and the US dollar.
Wednesday sees the release of some important fundamental data. Australia will release their trade balance figures, and the Governor of the Bank of Japan is holding a press conference about monetary policies.
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