Currency Markets: AUD and Cable Steady, China Data Fuels Rate Cut Hopes
AUD Dips Back
After gains on Thursday, the Australian dollar (AUD) has slipped back on Friday, currently trading at 0.6569 against the US dollar. The decline comes amid weak weekend lending data from China, raising hopes for an interest rate cut by the People's Bank of China (PBOC) as early as this week.
Cable Holds Steady
In contrast to the AUD, the British pound (GBP) known as Cable, is holding fairly steady at 1.2751 against the US dollar. The stability comes despite mixed economic data from the United Kingdom.
Inflation Data from India and Asia
Later today, India is set to release its inflation data for April, while Indonesia will also report its latest inflation figures. These data points will provide insights into the economic conditions in these countries and could potentially impact the value of their currencies.
USD/CNY Rises, Asian Currencies Strengthen
In the Asian currency markets, the US dollar has strengthened against the Chinese yuan (CNY) to 7.2450. However, most other Asian currencies have followed the Japanese yen (JPY) higher, with the Malaysian ringgit (MYR) and Taiwanese dollar (TWD) leading the gains.
PMI Index in China
The manufacturing Purchasing Managers' Index (PMI) in China has dropped back below the 50 mark to 49.5, indicating a mild contraction in the sector. However, the service sector PMI made small gains, signaling resilience in that part of the economy.
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