EGP declines vs. USD at Thursday's close    Euro area inflation rises to 2.0% in October '24 – flash estimates    IF YOU LOVE SOMEONE WHO SMOKES, GIVE THEM THE FACTS    Asian stocks slide as chip sector weakens    Egypt's Minister of Environment highlights biodiversity issues at COP16    Egypt's Agriculture Minister meets Syrian, Bahraini counterparts to boost cooperation in Amman    Al-Qassam Brigades targets Israeli vehicles in eastern Gaza    ACUD, DP World, and GAFI sign MoU to develop free zone in New Capital    Egyptian government encourages increased mutual investment with Bahrain: Finance Minister    A Tale of Two Cities: Alexandria hosts 2nd edition of exhibition celebrating Greek, Egyptian cultural ties    Egypt, Djibouti leaders discuss strengthening ties, regional issues    Egypt's FM affirms commitment to Sahel security, offers support to Niger    Egyptian banking sector support underprivileged communities in Alexandria – CBE    Afghanistan signs $163m deal for cement plant    US tightens tech investment rules for China    Biden unveils $3b investment to strengthen US port infrastructure    Military Production, Environment Ministers inaugurate banana fiber recycling plant    Luxor Museum to host exhibition on 19th century antiquities inspection tours    Nourhan Kamal Wins 2024 Helmi Sharawy Award for African Studies    Egypt observes Intl. E-waste Day, highlights recycling efforts    Egypt's military capabilities sufficient to defend country: Al-Sisi    Al-Sisi emphasises water security is Egypt's top priority amid Nile River concerns    Cairo Opera House hosts grand opening of Arab Music Festival, Conference    Grand Egyptian Museum ready for partial trial run on October 16: PM    Colombia unveils $40b investment plan for climate transition    Kabaddi: Ancient Indian sport gaining popularity in Egypt    Ecuador's drought forces further power cuts    Al-Sisi orders sports system overhaul after Paris Olympics    Basketball Africa League Future Pros returns for 2nd season    Egypt joins Africa's FEDA    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Paris Olympics opening draws record viewers    Who leads the economic portfolios in Egypt's new Cabinet?    Financial literacy becomes extremely important – EGX official    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    Egypt records 36 new deaths from Covid-19, highest since mid June    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Aussie Touches 3-Year Low as RBA Bets Outweigh China PMI Gain
Published in Amwal Al Ghad on 01 - 08 - 2013

Australia's dollar touched the lowest in almost three years as bets the Reserve Bank will cut interest rates next week outweighed better-than-expected manufacturing data out of China, the nation's biggest trading partner.
The Aussie pared earlier losses after government figures showed China's manufacturing Purchasing Managers' Index (CPMINDX) unexpectedly advanced last month. Traders' projections for borrowing cost reductions in the coming year climbed to the most in 12 weeks before the RBA sets monetary policy on Aug. 6. New Zealand's currency extended declines to a fourth day, set for the longest losing streak in more than a month.
"The initial reaction to the Chinese PMI was very positive for risk, particularly for the Aussie," said Callum Henderson, the global head of currency research at Standard Chartered Plc in Singapore. "We've been bearish medium-term on the Aussie for quite some time. The weakness in the currency is due both to domestic and external factors."
The Aussie dropped 0.2 percent to 89.67 U.S. cents as of 4:41 p.m. in Sydney, after falling as much as 0.6 percent to 89.27, the least since September 2010. New Zealand's kiwi dollar lost 0.2 percent to 79.68 U.S. cents after declining 1.3 percent in the previous three days.
Australia's two-year bond yield, among the most sensitive to interest-rate expectations, touched 2.28 percent, the lowest since July 2012. The yield on benchmark 10-year notes dropped six basis points, or 0.06 percentage point, to 3.67 percent. New Zealand's two-year swap rate, a fixed payment made to receive floating rates, was little changed at 3.33 percent.
Rate Bets
Interest-rate swaps data compiled by Bloomberg show traders see a 92 percent chance that RBA Governor Glenn Stevens and his board will lower Australia's overnight cash rate target by 25 basis points to 2.5 percent next week.
A Credit Suisse Group AG index based on swaps had indicated traders' expectations for a 57-basis-point reduction to the benchmark over the next 12 months, the most since May 7 and the biggest predicted cut among 10 developed-nation central banks tracked by bank.
"The market is still in a mood to sell rallies in the Aussie, particularly with RBA rate-cut expectations still ramping up," said Mike Jones, a Wellington-based currency strategist at Bank of New Zealand Ltd. "We don't think enough easing is priced into the curve. Given this, we suspect bounces in the currency will be short-lived."
Worst Performance
Australia's statistics bureau said today the nation's export price index declined 0.3 percent in the second quarter, compared with analyst estimates for a 0.3 percent gain.
The Aussie fell 11.5 percent in the past three months, the worst performance among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The kiwi had the second-biggest decline, falling 4.1 percent.
China's manufacturing PMI was at 50.3, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. That compared with the 49.8 median forecast of 35 analysts in a Bloomberg News survey and June's 50.1 level.
Some investors are "skeptical" of Chinese data, and that may lead them to ignore the jump in the measure, according to Annette Beacher, Singapore-based head of Asia-Pacific research at TD Securities Inc. Bearish views on the Chinese economy are "preferred" by some investors, Beacher said in an interview.
Another report today showed a separate gauge of Chinese manufacturing by HSBC Holdings Plc and Markit Economics fell to 47.7 in July from 48.2 the previous month. Readings above 50 indicate expansion.
Source: Bloomberg


Clic here to read the story from its source.