The Japanese yen was pegged back slightly over the weekend and into yesterday. Sunday’s Chinese manufacturing figures, which came in above forecast and improved upon the previous month, heightened demand for riskier assets and cut traders’ appetite for the safe-haven Japanese currency. With China being the world’s second largest economy, its manufacturing industry is an important indicator for the health of the global economy, specifically the Asian market. The yen was also dented by the fact that US Wall Street stocks closed last week on record highs.
The Australian dollar, which one would usually expect to thrive off the back of strong Chinese data, was subdued in the markets yesterday. Despite taking a little strength from the figures, the Australian currency was pegged back yesterday after monthly building permits data came in well below forecast. It promises to be another interesting day for currency, with retail sales data, as well as an interest rate decision early this morning. Eyes will also be on trade balance figures tonight. Elsewhere Chinese economic sentiment came in as expected which hopefully shows some stability returning to their economy
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