Forex - Aussie falls after weaker NAB, HSBC China PMI surveys

Investing.com - The Aussie fell further on Thursday after disappointing business confidence and conditions at home and weaker China manufacturing data abroad.

AUD/USD changed hands at 0.7725, down 0.40%, while USD/JPY traded at 120.04, up 0.10%. EUR/USD traded at 1.0695, down 0.28%.

In Australia is the first quarter NAB business confidence and business conditions survey showed confidence flat from plus-2 in the fourth quarter and conditions down to plus-2 from plus-5.

In China, the HSBC (LONDON:HSBA) flash manufacturing PMI fell to 49.2 in April from March's final of 49.6, shrinking for the third month in-a-row.

The New Zealand dollar dropped to 0.7587, down 1.02%, after signals the central bank could cut rates.

The Reserve Bank of New Zealand remains vigilant over wages and would consider easing monetary policy if these settle at levels lower than the inflation target, Assistant Governor John McDermott said Thursday.

"Evidence of weakening demand and domestic inflationary pressures would prompt us to consider lowering interest rates. There are some areas of uncertainty surrounding the outlook for capacity pressures, including the lingering effects of the recent drought in parts of the country, fiscal consolidation, lower dairy incomes and the impact of the high exchange rate on some export and import substitution industries," McDermott said.

The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, rose 0.23% to 98.46.

Overnight, the Swiss franc plunged more than 1.6% against the dollar on Wednesday, after the Swiss National Bank curtailed the number of deposit holders that are exempt from negative interest rates.

The negative interest rates will now be applicable to holders in certain public accounts, including PUBLICA, the confederation's federal pension fund and the Central Bank's own pension fund. The policy move could be viewed as an indication that the Swiss National Bank has been ineffective in driving capital away from the franc.

Under the new policy, the groups will be charged a rate of 0.75% on deposits exceeding CHF 10 million. A select group of deposit account holders will still be exempt from the negative interest rates, according to the SNB.

"In the future, the only sight deposit accounts to be exempt from negative interest will be those of the central Federal Administration and the compensation funds for old age and survivors’ insurance, disability insurance and the fund for loss of earned income," the SNB said in a statement.

The Federal Housing Finance Agency (FHFA) also said Wednesday that its House Price Index (HPI) ticked up 0.7% in February, above a 0.4% increase a month earlier. The index, which covers single-family housing by evaluating data compiled by Fannie Mae and Freddie Mac, increased 5.4% on a year-over-year basis. In its previous monthly report, the FHFA said the index rose 5.1% from its level during the same period last year.