Yahoo Finance

Earlier in the Day:

It’s was a busy start to the day on the economic calendar this morning. The Aussie Dollar and the Japanese Yen were in action this morning, with economic data from China also in focus.

For the Japanese Yen

The manufacturing sector was in focus early in the day.

In February, Japan’s Manufacturing PMI increased from 49.8 to 51.4, which was an upward revision from a prelim 50.6.

According to the February survey,

• This was the strongest improvement in the health of the sector since Dec-2018.

• Production volumes increased for the 1^st time since Dec-2018.

• Output saw a moderate expansion, supporting the uptick in the PMI.

• Manufacturers reported that a gradual recovery in demand led to increased orders for manufactured goods.

• New orders expanded for the second month in a row, with the pace of growth the quickest since Oct-2018.

• Also, new export orders increased for the first time in 4-months in February, supported by strong demand from China in particular.

• Employment levels continued to fall, however, though the pace of decline was softer than in recent months.

• Cost burdens rose for a 9^th consecutive month, with the rate of input cost inflation accelerating at the fastest pace in 2-years.

• Optimism across the sector strengthened to the highest since Jul-2017, supported by hopes of an end to the pandemic.

The Japanese Yen moved from ¥106.491 to ¥106.500 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.06% to ¥106.63 against the U.S Dollar.

For the Aussie Dollar

In February, the AIG Manufacturing Index rose from 55.3 to 58.8, the highest level since Mar-2018.

According to the February survey,

• Five of the six manufacturing sectors reported positive trading conditions in February.

• The building materials sector recorded its first month of expansion since Aug-2019, supported by government fiscal stimulus.

• Only the metal products sector continued to report mildly negative conditions in February.

According to the ABS, company gross operating profits slid by 6.6%, quarter-on-quarter, reversing a 3.2% increase in Q3. Economists had forecast a 4.0% decline.

The Aussie Dollar moved from $0.77501 to $0.77527 upon release of the figures that preceded China’s Manufacturing PMI numbers. At the time of writing, the Aussie Dollar was up by 0.57% to $0.7750.

From China

In February, the Caixin Manufacturing PMI fell from 51.5 to 50.9. Economists had forecast for the PMI to hold steady at 51.5.

According to the February survey,

• Companies reported slower rises in both output and new work for a 3^rd consecutive month.

• Firms noted that the COVID-19 pandemic had weighed on demand and impacted business operations.

• New export work fell for a second consecutive month.

• Total new work expanded at the weakest pace for 9-months, with new export orders falling for a 2^nd consecutive month.

• Rising prices for raw materials and higher transport costs led to a further marked increase in input costs.

• Factory gate prices rose solidly, as firms looked to partially pass on higher cost burdens to customers.

• In spite of this, companies were strongly optimistic that output will rise over the next year on hopes of a global economic rebound.