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ForexLive Asia-Pacific FX news wrap: China’s January PMIs much improved | Forexlive

It
was a data-heavy day in Asia with some FX response. The response was
limited though as traders counted down to the Federal Reserve,
European Central Bank and Bank of England later this week.

From
Australia today we had awfully weak retail sales numbers come through
for December. Apart from COVID-times and the introduction of
Australia’s value-added tax (the GST) the -3.9% m/m result for
retail sales was the worst ever. There may well be some seasonal
adjustment issues involved given the shift in the buying culture to
November’s Black Friday and Cyber Monday sales. The weak sales
numbers were compounded by slowing credit growth data from the
Reserve Bank of Australia. Both business and housing credit growth
slowed, reflecting rising interest rates and falling house prices.

AUD/USD
and NZD/USD have dribbled a little lower during the session.

From
China today we had official January PMIs, from China’s National
Bureau of Statistics (NBS). Both manufacturing and services jumped
back into expansion. January was the first full month of reopening
for the country. Details of the manufacturing report showed 18 out of
21 manufacturing industries lifting higher in the month.

The
International Monetary Fund (IMF) released its latest update to its
views on the global economy. The organisation raised its 2023 global
growth forecast to 2.9% (from its previous report forecast of 2.7% in
October 2022) citing demand resilience in advanced economies, an
easing back in rates of inflation, and China reopening. The IMF
expect China’s 2023 GDP growth at 5.2% (from 4.4% in October 2022
forecasts) with 2024 China growth unchanged at 4.5%.

AUD
and NZD I’ve already mentions. USD/JPY has fallen a little on the
session but has had a very limited range. USD/CAD added to its
overnight gains. Oil remained on the soft side in Asia time. EUR, GBP
are little net changed against the dollar. Gold has dropped back
towards USD1920.

Asian
equity markets:

  • Japan’s
    Nikkei 225 -0.1%

  • China’s
    Shanghai Composite -0.4%

  • Hong
    Kong’s Hang Seng -1%

  • South
    Korea’s KOSPI -0.4% (South Korean giant Samsung fell circa 3% after posting a 69% profit drop)

  • Australia’s
    S&P/ASX 200 -0.05%

Oil stayed heavy: