FOREX TradingCharts.com

Forex News: Australian Dollar Advances As China Service Activity Moves

Australian Dollar Advances As China Service Activity Moves To Expansion

06/03/2020 - 03:27:00 (RTTNews)

(RTTNews) - The Australian dollar climbed against its major counterparts in the Asian session on Wednesday, as China's services sector returned to expansion last month for the first time since January, signaling recovery in economic activity from the coronavirus crisis.

The Caixin/Markit services Purchasing Managers' Index (PMI) rose to 55.0 in April from 44.4 in April, hitting the highest level since late 2010.

Expectations for V-shaped recovery coupled with expectations of central bank policy support helped investors shrug off rising geopolitical risks.

Survey results from IHS Markit showed that Australia's private sector contracted substantially in May as ongoing measures to contain the spread of the coronavirus continued to hit demand.

The Commonwealth Bank services Purchasing Managers' Index climbed to 26.9 in May from 19.5 in the previous month. However, a score below 50 indicates contraction.

Data from the Australian Bureau of Statistics showed that Australia's gross domestic product dropped a seasonally adjusted 0.3 percent on quarter in the first three months of 2020.

That was in line with expectations following the 0.5 percent quarterly gain in the three months prior.

The aussie firmed to 5-month highs of 1.6033 against the euro and 0.6983 against the greenback, after earlier falling to 1.6222 and 0.6886, respectively. The aussie is seen finding resistance around 1.57 against the euro and 0.72 against the greenback.

The aussie appreciated to a 4-1/2-month high of 75.76 against the yen and more than a 1-year high of 0.9415 against the loonie, off its previous lows of 74.80 and 0.9310, respectively. If the aussie rises further, 78.00 and 0.96 are possibly seen as its next resistance levels against the yen and the loonie, respectively.

In contrast, the aussie fell to 1.0812 against the kiwi, from a high of 1.0861 seen at 9:20 pm ET. The aussie is likely to find support around the 1.06 level.

Looking ahead, PMI reports from major European economies, German jobless rate for May, Eurozone PPI and jobless rate for April are due in the European session.

U.S. ADP private payrolls data for May is scheduled for release at 8:15 am ET.

At 10:00 am ET, the Bank of Canada announces decision on interest rates. Economists forecast the benchmark rate to remain at 0.25 percent.

In the New York session, U.S. ISM services PMI for May and factory orders for April are set for release.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


U.S. Dollar Higher As Virus Cases Surge (15 min(s), 31 sec(s) ago)
(RTTNews) - The U.S. dollar strengthened against its major counterparts in the European session on ...Full Story»

Australian Dollar Drops On Rising COVID-19 Cases In Australia's Victoria State (06 min(s), 31 sec(s) ago)
(RTTNews) - The Australian dollar slipped against its major counterparts in the Asian session on T ...Full Story»

Aussie Little Changed After RBA Decision (06 min(s), 31 sec(s) ago)
(RTTNews) - The Reserve Bank of Australia kept its benchmark lending rate at 0.25 percent, as expe ...Full Story»

Aussie Falls Ahead Of RBA Decision (02 min(s), 28 sec(s) ago)
(RTTNews) - At 12:30 am ET Tuesday, the Reserve Bank of Australia announces its decision on intere ...Full Story»

Dollar Little Changed Following U.S. ISM Services PMI (36 min(s), 31 sec(s) ago)
(RTTNews) - Following the release of the U.S. ISM services PMI for June at 10:00 am ET Monday, the ...Full Story»

Dollar Drops Ahead Of U.S. ISM Services PMI (27 min(s), 31 sec(s) ago)
(RTTNews) - The U.S. ISM services PMI for June is scheduled for release at 10:00 am ET Monday. ...Full Story»

U.S. Dollar Declines Amid Economic Optimism (45 min(s), 31 sec(s) ago)
(RTTNews) - The U.S. dollar fell against its major counterparts in the European session on Monday, ...Full Story»

Euro Little Changed After Eurozone Retail Sales (36 min(s), 32 sec(s) ago)
(RTTNews) - Eurostat has released euro area retail sales data for May at 5.00 am ET Monday. The eu ...Full Story»

Search

FOREX NEWS

U.S. Dollar Higher As Virus Cases Surge

07/07/2020 - 06:43 AM (RTTNews)
(RTTNews) - The U.S. dollar strengthened against its major counterparts in the European session on ...Full Story>>

Australian Dollar Drops On Rising COVID-19 Cases In Australia's Victoria State

07/07/2020 - 02:33 AM (RTTNews)
(RTTNews) - The Australian dollar slipped against its major counterparts in the Asian session on T ...Full Story>>

Aussie Little Changed After RBA Decision

07/07/2020 - 00:33 AM (RTTNews)
(RTTNews) - The Reserve Bank of Australia kept its benchmark lending rate at 0.25 percent, as expe ...Full Story>>

Aussie Falls Ahead Of RBA Decision

07/07/2020 - 00:24 AM (RTTNews)
(RTTNews) - At 12:30 am ET Tuesday, the Reserve Bank of Australia announces its decision on intere ...Full Story>>

Dollar Little Changed Following U.S. ISM Services PMI

07/06/2020 - 10:05 AM (RTTNews)
(RTTNews) - Following the release of the U.S. ISM services PMI for June at 10:00 am ET Monday, the ...Full Story>>

Do not sell my personal information

Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.