AUD: A$ Generally Stronger Ahead Of US Tariff Announcement, AUDNZD Lower
Apr-02 01:58
AUDUSD is approaching its earlier intraday high of 0.6291 and is currently 0.2% higher during today’s APAC session at 0.6290 as markets wait for details on US reciprocal tariffs due to be announced at 1600 ET or 0700 AEDT Thursday. The USD index is unchanged.
- Aussie strengthened further against the yen after the pair rose 0.2% yesterday. AUDJPY is up 0.3% to 94.21 today, close to the intraday high of 94.25. AUDEUR is 0.1% higher at 0.5825 and AUDGBP +0.2% to 0.4867. These gains could be unwound though if US tariffs are seen as worse than expected; a scenario which would likely drive a pullback in risk.
- The AUD is 0.1% lower against risk-sensitive kiwi at 1.1003. It has again found support at 1.1000 and is currently hovering around this level.
- Equities are mixed with the ASX up 0.2%, CSI 300 flat but the Hang Seng down 0.6% and S&P e-mini -0.1%. Oil prices are little changed with WTI around $71.20/bbl. Copper is up 0.3% and iron ore around $104/t.
- Apart from the US tariff announcement, the Fed’s Kugler speaks on inflation expectations and March US ADP employment and February orders are released. The ECB’s Lagarde, Schnabel and Lane talk.
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Historical bullets
CHINA: February CAIXIN PMI Rises in February.
Mar-03 01:54
- China’s February CAIXIN PMI beat expectations in February.
- Expectations were dampened, given the impact of Lunar New Year holidays, at +50.4 – from +50.1 in January.
- The result of +50.8 was the highest print in three months and the fifth month in a row of expansion (above 50 equals expansion).
- Output rose to +51.6 from +51.2 with new orders up on the previous month.
- The Caixin China General Services Purchasing Managers' Index is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 private service sector companies. The index tracks variables such as sales, employment, inventories and prices and is a useful indication as to the general health of private manufacturing companies.
MNI: CHINA FEB CAIXIN MANUFACTURING PMI 50.8 VS 50.1 IN JAN
Mar-03 01:49
- CHINA FEB CAIXIN MANUFACTURING PMI 50.8 VS 50.1 IN JAN
ASIA STOCKS: Equities Mixed On Geopolitical Tensions
Mar-03 01:40
Asian equity markets are mixed today amid a complex backdrop of global trade tensions, US economic data, and regional policy expectations.
- Japanese shares rebounded, with the Topix Index rising 1.30% and the Nikkei advancing 1%, driven by gains in automakers like Toyota (+2.5%) and financial stocks, as softer US inflation data (core PCE up 0.3% month-on-month and 2.6% year-on-year) fueled expectations of potential Federal Reserve rate cuts, while a pause in yen appreciation encouraged buying.
- South Korea is out for Independence day, while Taiwan's TAIEX is trading 1.60% lower.
- Chinese stocks face uncertainty as investors await the NPC outcome on March 5, with hopes pinned on a robust fiscal stimulus to counter weak domestic demand and US tariff threats, though Hong Kong stocks are supported by growing mainland Chinese investment, which hit HK$153b net in February.
- Australia's ASX 200 edging up 0.3%led by banks and property stocks. New Zealand’s S&P/NZX 50 dipped 0.6%
- Elsewhere, the yen is poised for further gains as a safe-haven asset amid falling US Treasury yields and rising volatility, while the Australian dollar appears vulnerable due to trade concerns and reliance on Chinese policy clarity. Trump’s tariff plans, set to escalate on March 4, continue to weigh on sentiment, particularly for China-linked markets, though southbound flows into Hong Kong may mitigate some pressure.
