By FXEmpire.com
Analysis and Recommendation: (close of Asian session)
The USD/CNY is trading at 6.2986 up from yesterday. The dollar was able to pick up some strength on an exceptional ISM Manufacturing report that showed that US manufacturing was expanding above forecast.
The report showed a rate of 54.8, when economists has forecast 53.0. Weak data from the US over the past two weeks had markets worrying that the US had hit s spring stall. In China today the HSBC Manufacturing PMI was released showing 49.30, any number under 50 is viewed as negative.
Also today, the Chinese central bank set the midpoint of the yuan’s daily trading range at a record high against the dollar. Although global dollar strength prevented the greenback from breaking below the 6.3-yuan level, the downward creep of the dollar’s range signals that China has no problems with a stronger yuan.
Economic Data for May 1 – 2, 2012 actual v. forecast
( Most markets were closed for “May Day” Holiday)
|
GBP |
Manufacturing PMI |
50.5 |
51.4 |
51.9 |
|
USD |
ISM Manufacturing Index |
54.8 |
53.0 |
53.4 |
|
May 02 |
CNY |
Chinese HSBC Manufacturing PMI |
49.30 |
49.10 |
Economic Events for May 3, 2012 for the Asian and US Markets
8:30am USD Unemployment Claims
Measures the number of individuals who filed for unemployment insurance for the first time during the past week. Although it’s generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions.
8:30am USD Prelim Nonfarm Productivity q/q
Measures annualized change in labor efficiency when producing goods and services, excluding the farming industry. Productivity and labor-related inflation are directly linked – a drop in a worker’s productivity is equivalent to a rise in their wage. When businesses pay more for labor the higher costs are usually passed on to the consumer.
8:30am USD Prelim Unit Labor Costs q/q
This measures annualized change in the price businesses pay for labor, excluding the farming industry. It’s a leading indicator of consumer inflation – when businesses pay more for labor the higher costs are usually passed on to the consumer.
10:00am USD ISM Non-Manufacturing PMI
The Institute for Supply Management measures the level of a diffusion index based on surveyed purchasing managers, excluding the manufacturing industry. It’s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.
1:00pm USD FOMC Member Lockhart Speaks
Federal Reserve FOMC members vote on where to set the nation’s key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy.
9:30pm AUD RBA Monetary Policy Statement
Released quarterly the Statement on Monetary Policy provides valuable insight into the bank’s view of economic conditions and inflation – the key factors that will shape the future of monetary policy and influence their interest rate decisions.
Government Bond Auctions (this week)
Date Time Country
May 03 08:30 Spain
May 03 08:50 France
May 03 09:10 Sweden
May 03 09:30 UK
May 08 09:15 Austria
May 08 09:30 Belgium
May 08 14:30 UK
May 08 15:30 Italy
May 08 17:00 US
May 09 09:10 Sweden
May 09 09:30 Germany
May 09 09:30 Swiss
May 09 09:30 UK
May 09 14:30 Sweden
May 09 15:30 Italy
May 09 17:00 US
May 10 15:00 US
May 10 17:00 US
May 11 09:10 Italy BOT auction
May 11 10:00 Belgium
Click here for updated USD/CNY News.
Originally posted here
