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    Industrial output growth in South Korea drops to -1.2%, falling short of the expected 0.1%

    by VT Markets
    /
    Oct 31, 2025
    ### NZD/USD Performance Review The AUD/USD currency pair is trading around 0.6550, reacting to the latest NBS PMI data from China. Gold prices are slightly up as safe-haven buyers step in, though it remains below $4,050 due to the Federal Reserve’s aggressive approach. In October, China’s NBS Manufacturing PMI dropped to 49, while the Non-Manufacturing PMI rose slightly to 50.1. ### Global Manufacturing Slowdown We are observing clear signs of a global manufacturing slowdown, particularly from Asia. South Korea’s industrial output unexpectedly fell by 1.2% in September, and China’s manufacturing PMI has dropped to 49, indicating a contraction. This suggests a decline in global demand for goods, reminiscent of previous global uncertainties, like the slowdown at the end of 2023. The US dollar is gaining strength as hopes for Federal Reserve rate cuts diminish. This situation mirrors what happened in 2024 when the Fed kept rates steady to tackle inflation. Currencies such as the British Pound are hitting six-month lows. Consider buying put options on pairs like GBP/USD and AUD/USD to benefit from further dollar strength. This strategy could yield profits if these currencies keep falling against the dollar. Gold is gaining interest due to the uncertainty, but its potential for growth seems limited by the strong dollar and the Fed’s firm position. With gold trading above $4,000, it may stay within a narrow range for now. This presents an opportunity to sell out-of-the-money call and put options to earn from traders betting on significant moves that might not occur. ### Asian Manufacturing and Equity Markets The weakness in Asian manufacturing poses a significant challenge for regional equity markets. We have seen similar trends in past slowdowns when South Korea’s industrial output experienced notable year-over-year declines, leading to poor market performance. Therefore, considering puts on indexes tied to global trade could be a smart hedge in the upcoming weeks. **Create your live VT Markets account and start trading now.**

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