CANBERA: The Australian and New Zealand dollars strengthen against their major currencies in the Asian session on Wednesday after the results of a private survey released earlier today showed that China’s manufacturing sector rebounded unexpectedly in February.
Flash data from Markit Economics showed that the HSBC flash manufacturing PMI rose to a four-month high of 50.1 in February from 49.7 in January. Economists expected the index to come in at 49.5. The latest reading marked a slight expansion of manufacturing activity.
In other economic news, data from the Australian Bureau of Statistics showed that the total value of construction work done in Australia fell less than expected in the fourth quarter.
Another data showed that the wage costs in Australia were up a seasonally adjusted 0.6% on quarter in the fourth quarter of 2014 – in line with expectations and unchanged from the third quarter.
Meanwhile, the Asian stock markets are advancing amid the increase in risk appetite.
At the semi-annual monetary policy testimony before the Senate Banking Committee on Tuesday, US Federal Reserve chair Janet Yellen indicated that the Fed is not likely to begin raising interest rates in at least the next couple of monetary policy meetings.
