Aussie stands still, kiwi soars

Aussie stands still, kiwi soars

On Monday, the Australian dollar stood still against its American counterpart, while the New Zealand dollar ascended after the release of China’s mixed manufacturing activity and Friday’s downbeat growth data kept weighing on the greenback.

The currency pair AUD/USD stood still at 0.7615, which is the highest value since July 15.

Data earlier demonstrated that in July China’s official manufacturing purchasing managers’ index ticked slumped to 49.9 from 50.0 last month, compared to hopes for an unchanged reading.

Meanwhile, the previous month, the Caixin manufacturing PMI headed north to 50.6 from June’s reading of 48.6, compared to hopes for a leapt to 48.7.

By the way, China appears to be Australia’s number major export partner and also New Zealand’s second biggest export partner.

As for NZD/USD, this currency pair soared 0.11%, being worth 0.7215, which is close to Friday’s two-week peak of 0.7233.

On Friday, the Commerce Department drew attention to the advance read on the second quarter, when American GDP disclosed a 1.2% annualized growth rate, which is below 2.6% expectations. 

Dollar pulls away

The evergreen buck pulled away from minimums it achieved following gloomy American growth figures late the previous week, while the Japanese yen pared some of the huge revenues generated after the BOJ disclosed a much smaller stimulus than it was actually expected.   

The dollar index, normally tracking the major American currency against a basket of key six counterparts, grew 0.1% being worth 95.578, thus rebounding from its Friday minimum of 95.384, its lowest value since July 5.

American GDP edged up at an annual 1.2% during April-June,and  Commerce Department figures unveiled on Friday, demonstrated a slight drift from the 2.6% surge forecast by financial experts surveyed by Reuters.

The greenback’s  advance was blocked in its tracks by the downbeat Q2 GDP figures.

The dollar index's next immediate technical target hit 94.75, as market speculation of an approaching interest rate lift keeps fading.

The FOMC statement earlier this week didn’t leave the impression that a September rate lift was quite probable and with mediocre growth numbers, the odds kept downgrading further.

Bazooka

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