Australian Dollar Drops on Chinese Services PMI, Manages to Bounce

The Australian dollar slumped after today’s data showed that growth of China’s services sector slowed unexpectedly. Yet by now, the currency managed to rebound and is trading near the opening level currently.

The Caixin China Services PMI dropped from 52.6 in February to 52.1 in March instead of rising to 53.2 as analysts. China is Australia’s biggest trading partner, therefore data from the Asian country tends to influence performance of the Aussie strongly.

Released yesterday, the Australian Industry Group Australian Performance of Services Index climbed from 49.0 to 51.7 in March, meaning that Australia’ services turned from contraction to growth.

AUD/USD dropped from 0.7568 to 0.7532 intraday before bouncing to trade near the opening level as of 12:57 GMT today. AUD/JPY was down to 83.13 before rebounding to the opening level of 83.77.

If you have any questions, comments or opinions regarding the Australian Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

seventy four − = 65