Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Forex - Dollar mixed in Asia with HSBC China manufacturing in focus

Published 08/20/2014, 07:09 PM
Updated 08/20/2014, 07:12 PM
Dollar mixed in Asia

Investing.com - The dollar was mixed in early Asian trade on Thursday with the focus on a preliminary manufacturing survey out of China that should set the tone for the Aussie and Japanese yen.

Ahead is the HSBC China August flash manufacturing PMI due at 0945 local time (0145 GMT). The July figure came in at 51,7 for the final, keeping solidly in expansion territory.

Later, the Reserve Bank of Australia releases forex transactions for July with the market looking for any hint on whether the RBA intervened during the month.

AUD/USD traded at 0.9285, down 0.02%, early in Asia, while USD/JPY held at 103.72, down 0.04%.

Overnight, the dollar traded higher against most major currencies after the Federal Reserve revealed in its July policy meeting minutes that rate hikes could come sooner rather than later if the labor market continues to improve.

The Federal Reserve voted at its July 29-30 meeting to leave benchmark interest rate unchanged at 0.00-0.25% and added it would cut its monthly bond-buying program to $25 billion from $35 billion at its July 29-30 meeting.

The Fed said that the overall economy is improving, though slackness remains in the labor market despite growth, which prompted monetary authorities to continue tapering its asset-purchasing program by only $10 billion per policy meeting.

The Fed's stimulus bond-buying program is seen concluding around October, and rate hikes are expected in 2015, though the timing of the latter remains up in the air.

The minutes from that meeting released earlier revealed that while some monetary authorities favored studying more data before deciding, others felt action should come sooner rather than later.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"Many participants noted that if convergence toward the Committee's objectives occurred more quickly than expected, it might become appropriate to begin removing monetary policy accommodation sooner than they currently anticipated," the minutes released earlier Wednesday read.

"Indeed, some participants viewed the actual and expected progress toward the Committee's goals as sufficient to call for a relatively prompt move toward reducing policy accommodation to avoid overshooting the Committee's unemployment and inflation objectives over the medium term," the minutes added.

Fed Chair Janet Yellen has said that the U.S. economy is improving though monetary authorities continue to note slackness in the labor market, though the minutes revealed some monetary authorities feel that slackness may be absorbed in the near future.

"Many members noted, however, that the characterization of labor market underutilization might have to change before long, particularly if progress in the labor market continued to be faster than anticipated."

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.02% at 82.31.

On Thursday, the U.S. is to produce data on unemployment claims, manufacturing activity and existing home sales.

The first day of the annual economic symposium is due to take place in Jackson Hole, Wyoming.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.