Currency Markets: AUD and Cable Steady, Weak China Data Fuels Rate Cut Hopes
AUD and Cable Hold Steady
After gains on Thursday, the AUD has retreated slightly on Friday, currently trading at 0.6569. Meanwhile, Cable remains relatively stable at 1.2751.
Weak China Data Raises Rate Cut Expectations
Soft weekend lending data from China has amplified expectations of an interest rate reduction as early as this week. The data signals a potential slowdown in the Chinese economy, increasing pressure on the central bank to take action.
India Inflation Data and PMI Reports
India's inflation data for April is due for release today, providing insights into the country's economic outlook. Additionally, PMI reports from China and the wider region, as well as Indonesia's latest inflation number, are expected to shed light on economic activity across Asia.
USDCNY Rises, Asian Currencies Gain Against JPY
USDCNY has appreciated to 7.2450, while most other Asian currencies have strengthened against the Japanese yen (JPY). The Malaysian ringgit (MYR) and Taiwanese dollar (TWD) have led the gains.
Manufacturing PMI Declines, Services PMI Improves
The manufacturing PMI index in China has fallen below 50 (49.5), indicating a mild contraction in the manufacturing sector. However, the service sector PMI has shown modest gains, suggesting that the services industry remains resilient despite the challenges in manufacturing.
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