Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Extended Sale! Save on premium data with Claim 60% OFF
Chinese Yuan Edges Higher on Manufacturing PMI Beat, Asia FX Muted
Author
Published Aug 30, 2022 11:18PM ET
Updated Aug 30, 2022 11:24PM ET
© Reuters.
By Ambar Warrick
Investing.com-- The Chinese yuan edged higher on Wednesday after data showed manufacturing activity shrank slightly less than expected in August, while most other Asian currencies tread water amid growing fears of a hawkish Federal Reserve.
The yuan rose 0.2% to 6.9012 to the dollar, recovering slightly from a two-year low hit this week. Government data showed on Wednesday that the manufacturing purchasing managers index (PMI) read 49.4, slightly above expectations of 49.2.
The yuan also benefited from a slightly stronger-than-expected daily midpoint fix by the People’s Bank of China, according to Reuters.
But while manufacturing activity was slightly better than expected, it still contracted for a second straight month in August, as a mid-year recovery appeared to be running out of steam.
China’s composite PMI, which gauges overall business activity in the country, also came in less than expected in August.
Slowing growth in the country indicates economic headwinds for the rest of Asia, given that several countries depend on China as an export destination.
But the Australian dollar rose 0.3% after Wednesday's data, given that it indicates some signs of recovery in the manufacturing sector. Australia is a major exporter of commodities to China.
Broader Asian currencies were muted, while the dollar index held around 20-year highs after stronger-than-expected U.S. jobs openings data heightened fears of a more hawkish Fed.
Strength in the jobs market gives the Fed more space to hike interest rates aggressively to tame inflation. Focus is now on upcoming U.S. nonfarm payrolls data, due on Friday, to gauge how hawkish the Fed can be at its next meeting.
Traders are pricing in a nearly 70% chance of a 75 basis point hike by the Fed during its September meeting.
The Japanese yen rose 0.2% on Wednesday, gaining more distance from the key 140 level after data showed retail sales grew more than expected in July. The data indicates that underlying consumption in the Japanese economy has persisted despite rising inflationary pressures.
In Southeast Asia, the Philippine peso rose 0.1% after producer price inflation grew in August from the prior month.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.