US Dollar Drops, Yuan Glides on Strong Factory Surveys

On Monday, regardless of the surprising improvement on China’s factory activity, the Chinese yuan plunged in Asia.

Hqbroker- Yuan stocks dropped

The last close of the US dollar versus the Chinese yuan down at 6.7054,0.1%

A much improved 50.8. came at The Caixin Markit PMI for March. It was released on Sunday by the official PMI from February of 49.2. It also gained 50.5 in four months as its first development.

An indication of an expansion is a reading above the level, while a contraction indicates a reading of below 50.

Chinese stocks were pushed higher by more than 2.5% as the optimistic data raised investors view. However, trading of the Chinese yuan was slightly lower today.  At the same time, after data disclosing the increase of US consumer spending in January, the dollar dropped.

Meanwhile, the dollar versus a basket of other currencies weakened at 0.14% to 96.713 tracked by the U.S. dollar index.

Two-thirds of US economic activity consists of consumer spending that increased in January of 0.1% after a decline in December of 0.6%, its first drop since September 2016.

Friday’s U.S. government employment report for March will be carefully monitored by investors.

Rate hikes this year are seen for elimination by The Federal together with the growth of amounts on wage that are closely monitored.

Updates on US retail sales and manufacturing activity will be done.

This week, for more trade talks, Chinese Vice Premier Liu He will travel to Washington to meet with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin about the Sino-U.S. trade negotiation.

Hqbroker- US-Sino trade talks

Despite the report of National Australia Bank Ltd. on Monday showing the country’s business confidence dropped to 0 in March from 2 the prior month, the Australian dollar versus the US dollar pair strengthened 0.4% to 0.7121.

In addition, the pair of US dollar and Japanese yen rose 0.2% to 111.03.

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Categories: Forex

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