Aussie jumps on HSBC China PMI, regional data and survey results

The Aussie jumped and the yen gained against the dollar in Asia on Wednesday as economic data and survey sets from Australia, China and Japan painted a modestly solid picture of economic recovery.

In Japan, the first quarter Tankan business survey showed plus-15, below the expected at plus-16, but, up from plus-12 in December for the first rise in two quarters.

Australia February building approvals fell 3.2% month-on-month, less than the 4.0% month-on-month fall expected after a 7.9% gain in January.

In China, the March CFLP manufacturing and services PMI rose to 50.1, better than the dip to 49.7 expected and up from February's 49.9.

The HSBC (LONDON:LONDON:HSBA) final PMI for March clocked in at 49.6, better than the 49.3 expected. Investors were shaken by the flash reading showing a surprising fall to 49.2 from February's final 50.7, with slack domestic demand taking the blame.

Currency traders, meanwhile, await a potential deal regarding the destabilization of the Iranian nuclear program, after the White House announced it could extend the deadline with Iran into Wednesday if negotiations remained productive.

In Europe, officials from the European Union and International Monetary Fund (IMF) described a set of austerity measures submitted by Greece at the end of last week as a list of ideas rather than a concrete plan. Greece's creditors have deemed the reforms necessary in order to unlock critical financial aid. The two sides reportedly remain far apart on critical issues such as Greek pension reform and debt relief.