The third quarter is officially over and the new month is underway with Asian currencies facing threats from every corner. Iron ore prices continue to
The third quarter is officially over and the new month is underway with Asian currencies facing threats from every corner. Iron ore prices continue to decline in Australia with retail sales hitting the wall. Japanese industrial production remains weak and the monthly Tankan index was mixed. Chinese headline PMI data met expectations but the subcategories were negative weighing on the New Zealand currency, while the US dollar continues to surge breaking annual records. The USDJPY added 10 points to trade at 109.87 after touching a high above the 110 level in the morning session. The AUD fell another 66 points to trade at 0.8682 immediately following the release of retail sales data and the kiwi gave up 25 points to trade at 0.7783. All three Asian currencies hit new lows.
Protests in Hong Kong continue on the holiday in China. Today is National Day, an official Chinese holiday with markets closed and business shuttered. Hong Kong political leader Leung has urged protesters to back reforms set out by Beijing, amid huge pro-democracy rallies in the territory. Speaking on the National Day holiday, Mr Leung said Hong Kong should work with Beijing to achieve progress. The protesters want Beijing to withdraw plans to vet candidates for the next Hong Kong leadership election in 2017. The protests are seen as a direct challenge to Beijing’s grip on the territory’s politics. Analysts say leaders are worried that calls for democracy could spread to mainland cities. News of the protests is being heavily censored in mainland China. Media have blamed “radical opposition forces” for stirring up trouble. Meanwhile the US restated its position on the protests, saying that a genuine choice of candidates in the election would enhance the legitimacy of the chief executive.
The prime global currencies were generally weaker against the greenback through the European and US sessions on Tuesday. The US dollar index hovered near 4-year highs. The euro fell from highs near $1.2700 to lows near $1.2570, ending US trade near the $1.2625. The euro traded on a negative note and plunged around 0.4 yesterday. Lackluster report showed inflation stationary at 0.3% well below the required 2% for the European Central Bank. German Retail Sales jumped by 2.5 percent in August as compared to a fall of 1.1 percent in July. French Consumer Spending gained 0.7 percent in August as compared to a fall of 0.7 percent in July. German Unemployment Change rose to 12,000 in August from 3,000 in July. CPI Flash Estimate fell to 0.3 percent in September from 0.4 percent in August. Core CPI Flash Estimate declined to 0.7 percent in September from 0.9 percent in August. Unemployment Rate remained unchanged at 11.5 percent in August.