The post China’s September Caixin Manufacturing PMI contracts to 49.3, Services PMI drops to 50.3 appeared on BitcoinEthereumNews.com.

China’s Caixin Manufacturing Purchasing Managers’ Index (PMI) contracted to 49.3 in September after reporting 50.4 in August, the latest data showed on Monday. Meanwhile, the Chinese Caixin Services PMI dropped sharply to 50.3 in September from August’s 51.6. AUD/USD reaction to China’s Caixin PMI data At the time of writing, the AUD/USD pair is paring back gains to trade near 0.6920, still up 0.27% on the day. Australian Dollar FAQs One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods…

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Filed under: News - @ September 30, 2024 2:01 am