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4 Jun 2013
Flash: Chinese economy helps shape investment climate - BBH
FXstreet.com (Barcelona) - Brown Brothers Harriman analysts note that another force that has helped shape the investment climate has been the slowing of the Chinese economy.
They begin by commenting that the official May PMI data suggests some stabilization as the manufacturing reading rose to 50.8 from 50.6 and the service reading slipped slightly to 54.3 from 54.5. On the other hand, they see that the HSBC measure, with its emphasis on small businesses fell to 49.2 from the 49.6 flash and 50.4 reading in April. Further, the Chinese news seemed to help lift the Australian dollar from the start of today's activity and with the first US-China summit between US President Obama and new Chinese President Xi coming up, speculation that China will widen the dollar-yuan band are running high, but may be disappointed. They write, “We note that it is up a minor 1.6% this year against the US dollar, makes the Chinese yuan the strongest among the emerging market currencies this year.”
They begin by commenting that the official May PMI data suggests some stabilization as the manufacturing reading rose to 50.8 from 50.6 and the service reading slipped slightly to 54.3 from 54.5. On the other hand, they see that the HSBC measure, with its emphasis on small businesses fell to 49.2 from the 49.6 flash and 50.4 reading in April. Further, the Chinese news seemed to help lift the Australian dollar from the start of today's activity and with the first US-China summit between US President Obama and new Chinese President Xi coming up, speculation that China will widen the dollar-yuan band are running high, but may be disappointed. They write, “We note that it is up a minor 1.6% this year against the US dollar, makes the Chinese yuan the strongest among the emerging market currencies this year.”