SYDNEY: The Australian dollar held early gains on Thursday in Asia with a slight pickup in the HSBC China manufacturing survey helping sentiment with China a top export destination and minutes from the Federal Reserve showed a rate hike is unlikely next month.
AUD/USD traded at 0.7880, up 0.08%, while USD/JPY changed hands at 121.18, down 0.14%. EUR/USD traded at 1.1115, up 0.19%.
In China, the May HSBC flash manufacturing PMI rose to 49.1, up slightly from a disappointing one-year low of 48.9 in April. The output index fell to 48.4 in the HSBC May survey, a 13-month-low.
“The Flash China Manufacturing PMI pointed to a further deterioration in operating conditions in April, with production declining for the first time in 2015 so far,” said Annabel Fiddes, economist at Markit.
“Moreover, softer client demand, both at home and abroad, along with further job cuts indicate that the sector may find it difficult to expand, at least in the near-term, as companies tempered production plans in line with weaker demand conditions. On a positive note, deflationary pressures remained relatively strong, with both input and output prices continuing to decline, leaving plenty of scope for the authorities to implement further stimulus measures if required.”
The People’s Bank of China has cut interest rates three times since November last year to keep the economy on track.
Earlier, an inflation survey for May by the Melbourne Institute showed inflation expectations for Australian consumers up slightly in May.
http://www.investing.com/news/forex-news/forex—aussie-dollar-holds-gains-after-china-hsbc-pmi-improves-mildly-342827
