The week starts with good sentiment as China prints better than expected manufacturing PMI in September (51.2, versus 60.9 expected & 50.1 prev).
Shanghai’s Composite added 1.31%, while Hang Seng index retreated 0.73%. PBOC set the Yuan mid-point at 6.1475 versus US dollar, the highest since 2005 revaluation.
A look at the latest exchange rates shows:
- The British pound vs Australian dollar exchange rate is unchanged on Friday night's close. 1 GBP converts into 17041 AUD.
- 1 AUD thus converts into 0.5868.
Be aware that the above are spot market inter-bank currency rates. Your bank will charge a spread when transferring your money. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you up to 5% more currency. Please learn more here.
As sterling was aiming for levels of 1.71, impressive Chinese PMI figures have halted sterling strength and benefitted the Aussie currency right across the board.
Sash Nugent at Caxton FX says: "we expect the AUD to continue to drive the rate today, but believe sterling will keep the GBP/AUD rate above 1.70."
"The good Chinese PMI helped AUDJPY to recover to 93.60 overnight; AUDUSD traded up to 0.9438 early in the session. Offers remain tight pre-0.9500 as stronger AUD increases the probabilities for a future RBA rate cut to cool down the markets," says Ipek Ozkardeskaya at Swissquote Research.
Elsewhere we see the New Zealand dollar has failed to capitalise on today's strong Chinese data.
"The Kiwi has failed to gain on the upside surprise provided by Chinese data, with the GBP/NZD rate rising marginally so far this morning," says Nugent, "with little to drive the rate in either direction we predict some range bound trading in today’s session."