Aussie jumps on HSBC China PMI as it expands into positive zone

The Australian dollar jumped Wednesday after better than expected February figures from an HSBC flash survey on China manufacturing and as the China market re-opened after a week-long holiday.

Markets in China re-open today after the Lunar New Year holidays which started last Wednesday.

The HSBC China February flash manufacturing PMI jumped to 50.1, well above the expected drop to 49.5 and up from January’s final 49.7.

Australia’s fourth quarter wage price index and construction work done rose 0.6%, meeting expectations and an annual pace of up 2.5%, compared to a 2.6% gain in the third quarter.

For construction work done, the fourth quarter fell 0.2%, better than the 1.2% drop expected.

Overnight, the dollar trimmed gains against a basket of other major currencies on Tuesday, after downbeat U.S. consumer confidence data and as Federal Reserve Chair Janet Yellen said that rates will remain on hold for at least the next couple of meetings.

In a report, the Conference Board, a market research group said its index of consumer confidence fell to 96.4 this month from a reading of 103.8 in January, whose figure was revised up from a previously reported 102.9.

The euro erased earlier losses after Greece’s package of proposed economic reforms was approved by its euro zone creditors on Tuesday, securing Athens an extension of its bailout for another four months.

 Varchev Traders

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