13 Dec 2013
Flash: How will the AUD fair in Chinese data?
FXstreet.com (London) - The AUD has suffered heavy losses since ’RBA’s Stevens says Australia needs A$ closer to 85 U.S cents’ and there has been little data of late for markets to digest for Australia. However, strategists at BBH noted that over the weekend, HSBC flash China manufacturing PMI will be reported.
Key Quotes:
“This will be the first reading for December, and consensus is 50.9 vs. 50.8 final in November”.
“We expect the Chinese economy to maintain its modest growth path into 2014. Indeed, consensus right now is GDP growth of 7.6% y/y in Q4, which follows 7.8% growth in Q3. Growth is seen at 7.6% in Q1 2014 before slowing further to 7.5% in Q2, 7.4% in Q3, and 7.35% in Q4”.
“Despite the modest growth profile, it appears the authorities are prepared to allow further modest yuan appreciation in the coming months”.
Key Quotes:
“This will be the first reading for December, and consensus is 50.9 vs. 50.8 final in November”.
“We expect the Chinese economy to maintain its modest growth path into 2014. Indeed, consensus right now is GDP growth of 7.6% y/y in Q4, which follows 7.8% growth in Q3. Growth is seen at 7.6% in Q1 2014 before slowing further to 7.5% in Q2, 7.4% in Q3, and 7.35% in Q4”.
“Despite the modest growth profile, it appears the authorities are prepared to allow further modest yuan appreciation in the coming months”.