Forex: NZD/USD – Back under 0.80
_iNVEZZ.com Wednesday July 24th:_ The New Zealand dollar has edged lower against the greenback in today’s early European session, with the pair falling to a current intraday low at 0.7939, despite a positive NZ trade balance update.
As reported by Statistics New Zealand at 23:45 BST yesterday, the June balance came out as a surplus of NZ$414 million, well up on May’s NZ$39 million surplus and bemusing analysts who’d been expecting a deficit of NZ$100 million.
The seasonally adjusted value of exported goods fell 4.7 percent to $11.0 billion during the second quarter of the year, following a rise of 0.4 percent in the prior quarter.
From China, the preliminary reading of this month’s HSBC Manufacturing Purchasing Managers Index checked in as an 11-month low of 47.7, down on June’s final reading of 48.2 and missing expectations for 48.5.
Hongbin Qu, Co-Head of Asian Economic Research at HSBC, observed: “The lower reading of the July HSBC Flash China Manufacturing PMI suggests a continuous slowdown in manufacturing sectors thanks to weaker new orders and faster destocking.”
Qu noted that there’s a flow-on effect in the PRC’s labour market: “This adds more pressure on the labour market. As Beijing has recently stressed to secure the minimum level of growth required to ensure stable employment, the flash PMI reinforces the need to introduce additional fine-tuning measures to stabilise growth.”
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