The focus for the session was on the official November PMIs from China’s National Bureau of Statistics (NBS). Both manufacturing and services PMIs mi
The
focus for the session was on the official November PMIs from China’s
National Bureau of Statistics (NBS). Both manufacturing and services
PMIs missed estimates and fell below October readings. It
was the second month in a row for manufacturing in contraction. The
initial market response was to sell ‘risk’ with AUD/USD, for
example, lower by only a few tics. The thing about poor data from
China, though, is that it quickly rekindles hopes for more stimulus, and
indeed the slight softness in risk was soon reversed on such hope.
AUD/USD, for example, has moved to its session high above 0.6640.
NZD/USD caught a bid also, helped along by comments earlier in the
session from RBNZ Governor Orr which were a restatement of some of
his hawkish comments yesterday both as part of the RBNZ policy
statement and his follow-up press conference.
As
I post both AUD and NZD are close to their highs, untroubled by the
news of another Chinese property developer default.
While
on the subject of central banks, we had Bank of Japan policy board
member Nakamura speaking, pushing back against speculation of any
near-term BOJ pivot away from loose policy. More in the points above.
USD/JPY has traded in a stable and small range circa 147.00 during
the day.
Still
to come is the OPEC+ meeting today, scheduled for 1500 GMT, which is
1000 US Eastern time. Discussion will centre on further output cuts.
As
an aside, if you looking for more cheerful news it’d pay to check
out analysis from the China International Capital Corporation (CICC).
CICC is a partially state-owned multinational investment management
and financial services company. Analysts at the firm have been barred
from sharing negative comments about the economy or markets in both
public and private discussions says an internal memo sent to its
research department this month.
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