Euro to AUD fluctuations occurred overnight following the publication of a Chinese manufacturing report.
The HSBC/Markit flash PMI for March came in at 48.1 in March, down from 48.5 in February and less than the reading of 48.7 expected.
The report marks a fifth month of contraction in China’s manufacturing sector.
In a statement released with the Markit data economist Hongbin Qu noted; ‘The HSBC Flash China Manufacturing PMI reading for March suggests that China’s growth momentum continued to slow down. Weakness is broadly-based with domestic demand softening further. We expect Beijing to launch a series of policy measures to stabilise growth.’
As China is Australia’s main trading partner, the ‘Aussie’ initially weakened after the data was published.
However, bets that the Reserve Bank of Australia will raise interest rates before the end of the year helped the Australian Dollar recover losses. Advancing Asian stocks also boosted the ‘Aussie’.
Bloomberg News quoted industry expert Thomas Averill as noting; ‘The Australian economic story is decoupling a little bit from China and our economic success is less in their hands and that’s probably why you’ve seen a more muted reaction to that [manufacturing] number.’
Furthermore, during the European session the Euro came under pressure as German manufacturing and services PMI measures came in below expected levels.
The German manufacturing gauge came in at 53.8, down from 54.8 the previous month.
Meanwhile, the services figure slid from 55.9 to 54.0, indicating that both of Germany’s main sectors expanded at a slower pace in March.
Euro losses were limited though as French manufacturing/services PMI trumped expectations by pushing above the 50 mark separating growth from contraction.
As the local session continued, services and manufacturing PMI figures for the Eurozone as a whole were published. Services PMI read as 52.4 versus expectations for a reading of 52.6 while manufacturing PMI came in at 53.0, the same as in February.
As the European session progressed the Euro strengthened against the Australian Dollar
Tomorrow the Euro to Australian dollar exchange rate could experience movement as a result of Germany’s business climate and current assessment reports. The data is expected to show a dip in German expectations for the country’s future economic performance.
EUR/USD movement will most likely be occasioned by the US Markit PMI.
Euro (EUR) Exchange Rates
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Currency, ,Currency,Rate ,
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Euro,
Euro,
Euro,
Euro,
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