24 Mar 2014
China HSBC/Markit PMI dominates the calendar - Westpac
FXStreet (Bali) - The ‘flash’ March China manufacturing PMI from HSBC/Markit, due at 1.45 GMT, dominates the calendar in Asia, notes Sean Callow, FX Strategist at Westpac.
Key Quotes
"The (final) 48.5 headline in Feb was the weakest reading since July 2013 so it’s a low base, suggesting at least a mild rise/dead cat bounce in March. Consensus is 48.7 with a range of 48.0 to 50."
"Westpac looks for a rise m/m but some way short of 50. The big downside surprise last month (48.3 vs 49.5) caused a 50 pip drop in AUD/USD so there will be plenty of tension around the data but surprises on that scale are rare."
"We will look at the breakdown such as orders/inventories ratio but FX markets will trade on the headline then move on."
Key Quotes
"The (final) 48.5 headline in Feb was the weakest reading since July 2013 so it’s a low base, suggesting at least a mild rise/dead cat bounce in March. Consensus is 48.7 with a range of 48.0 to 50."
"Westpac looks for a rise m/m but some way short of 50. The big downside surprise last month (48.3 vs 49.5) caused a 50 pip drop in AUD/USD so there will be plenty of tension around the data but surprises on that scale are rare."
"We will look at the breakdown such as orders/inventories ratio but FX markets will trade on the headline then move on."