3 Feb 2014
Australian PMI contracts for a third consecutive month
FXstreet.com (Barcelona) - The latest Australian Performance of Manufacturing Index (Australian PMI) saw a 0.9 points drop in January, to 46.7 points (seasonally adjusted), according to data collected by the Australian Industry Group.
Key findings - AiG
"It has now contracted for a third consecutive month (readings below 50 points indicate contraction) and the index had expanded in only two months (immediately after the 2013 Federal election) since June 2011."
"All of the Australian PMI® sub-indexes remained below 50 points this month, indicating contraction. The pace of contraction was strongest for the stocks and production sub-indexes. The exports sub-index improved in January but remains very weak."
" Across the sub-sectors, the food and beverages manufacturing sub-sector expanded again in January, though at its slowest pace since July 2013 (three month moving averages). Meanwhile, the petroleum, coal, chemicals and rubber products sub-sector index expanded (readings above 50 points) after two months of contraction, and non-metallic mineral products expanded for the first time since September 2011. In contrast, metal products and machinery and equipment manufacturing continued to contract in January (in three month moving average terms). "
"Comments from survey participants generally indicated that conditions remain fragile within local manufacturing, with many businesses pointing to an ongoing lack of demand, new orders or exports. "
Xstreet.com (Bali) - Another big selling day for the Aussie sent the rate 1 cent lower Thursday, a common pattern which has been repeated 3 times so far this year, - Jan 14, 16 and 23 -, as AUD gets hurt as a proxy of EMs.
While price action continues to scream selling the AUD each time buyers attempt to turn a well-established downtrend around, one should not overlook the fact that the currency has also been giving reassuring some clear signs that the sour sentiment is here to stay for the time being.
One of the special characteristics of trading the AUD this month has been the consistent 'counter-intuitive' fake moves displayed each time the currency received positive fundamental inputs.
Several positive releases, going from retail sales, trade figures, ... to latest CPI numbers, should have forced shorts to temporarily vanish from the market, but instead, each time upbeat AUD news came about, it has simply served as an excuse to enter AUD short at better 'value areas'.
Key findings - AiG
"It has now contracted for a third consecutive month (readings below 50 points indicate contraction) and the index had expanded in only two months (immediately after the 2013 Federal election) since June 2011."
"All of the Australian PMI® sub-indexes remained below 50 points this month, indicating contraction. The pace of contraction was strongest for the stocks and production sub-indexes. The exports sub-index improved in January but remains very weak."
" Across the sub-sectors, the food and beverages manufacturing sub-sector expanded again in January, though at its slowest pace since July 2013 (three month moving averages). Meanwhile, the petroleum, coal, chemicals and rubber products sub-sector index expanded (readings above 50 points) after two months of contraction, and non-metallic mineral products expanded for the first time since September 2011. In contrast, metal products and machinery and equipment manufacturing continued to contract in January (in three month moving average terms). "
"Comments from survey participants generally indicated that conditions remain fragile within local manufacturing, with many businesses pointing to an ongoing lack of demand, new orders or exports. "
Xstreet.com (Bali) - Another big selling day for the Aussie sent the rate 1 cent lower Thursday, a common pattern which has been repeated 3 times so far this year, - Jan 14, 16 and 23 -, as AUD gets hurt as a proxy of EMs.
While price action continues to scream selling the AUD each time buyers attempt to turn a well-established downtrend around, one should not overlook the fact that the currency has also been giving reassuring some clear signs that the sour sentiment is here to stay for the time being.
One of the special characteristics of trading the AUD this month has been the consistent 'counter-intuitive' fake moves displayed each time the currency received positive fundamental inputs.
Several positive releases, going from retail sales, trade figures, ... to latest CPI numbers, should have forced shorts to temporarily vanish from the market, but instead, each time upbeat AUD news came about, it has simply served as an excuse to enter AUD short at better 'value areas'.