Back
19 May 2014
AUD hurt by Chinese prospects - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, suggested the recent Chinese data would weigh on the AUD.
Key Quotes
"The Australian dollar has weakened modestly in the Asian trading session reflecting investor concerns over the weakening growth outlook in China. The Shanghai Composite index has declined overnight by just over 1.0% remaining close to its lows recorded so far this year."
"Weakness is also evident in the price of iron ore which has declined by around 25% so far in 2014 and has fallen to its lowest level since September 2012. The yuan continues to remain more stable in the near-term with the USD/CNY rate remaining just below the 6.2500-level."
"Further evidence was released over the weekend revealing that China’s housing market is cooling. New home prices in the 70 cities tracked by the government increased by an annual rate of 6.7% in April which compares to an annual rate of 9.6% in January."
"The PBoC told 15 banks last week to improve the efficiency of service, give timely approval and distribution of mortgages to qualified buyers. The release of the latest HSBC manufacturing PMI survey for May in the week ahead will be watched closely to assess whether the Chinese economy has likely continued to slow in Q2."
Key Quotes
"The Australian dollar has weakened modestly in the Asian trading session reflecting investor concerns over the weakening growth outlook in China. The Shanghai Composite index has declined overnight by just over 1.0% remaining close to its lows recorded so far this year."
"Weakness is also evident in the price of iron ore which has declined by around 25% so far in 2014 and has fallen to its lowest level since September 2012. The yuan continues to remain more stable in the near-term with the USD/CNY rate remaining just below the 6.2500-level."
"Further evidence was released over the weekend revealing that China’s housing market is cooling. New home prices in the 70 cities tracked by the government increased by an annual rate of 6.7% in April which compares to an annual rate of 9.6% in January."
"The PBoC told 15 banks last week to improve the efficiency of service, give timely approval and distribution of mortgages to qualified buyers. The release of the latest HSBC manufacturing PMI survey for May in the week ahead will be watched closely to assess whether the Chinese economy has likely continued to slow in Q2."