Currency Note Worldwide

Weak Chinese manufacturing data undermines commodity currencies

By Ricky Bean February 21st, 2014

The impact of weak manufacturing figures out of China were felt  across a number of countries yesterday. The Australian dollar lost ground against the majority of its 16 most traded peers, with China being the primary export destination for the commodity-back Australian economy. Other export-reliant countries were also impacted, with the South African rand and New Zealand dollar also losing ground. The figures had the converse effect on the Japanese yen. The Chinese figures injected some nervousness into the global markets, and hence we saw demand increase for the traditionally safe-haven yen.

Political unrest in Thailand caused the Thai baht to post its biggest 3-day loss in 6 weeks. With the currency trading near 2009 lows against sterling, protests in the country have triggered concern around its economic outlook, particularly at a time when investors are cutting holdings in emerging-market assets.

Canadian inflation figures and retail sales data will be today’s main talking point. Traders will also have one eye on the G20 summit, commencing on Saturday.

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