It’s early doors in Asia but already we are seeing currencies react to the better-than-expected Chinese NBS Manufacturing PMI (purchasing managers index) which printed at 51 against the 50.6 expected and 50.3 last month.
It’s just another example of the recent improvement in Chinese economic performance and the HSBC PMI due out later today is keenly anticipated.
At the moment, only Forex markets are open but traders clearly like this data and they have reacted by taking the Aussie Dollar, British Pound and US dollar higher.
Gold has also come under pressure and is testing support at $1380, more than $50 an ounce lower than last week’s high as fear seems to be washing out of markets this morning.
We’ll see if the rest of Asia wants to be this positive, but with little chance of a US strike on Syria on their Labour Day holiday, there isn’t a lot of reasons to be bearish.