Australian, NZ Dollars Higher After Strong China Data
January 03 2019 - 9:55PM
RTTF2
The Australian and New Zealand dollars strengthened against
their major counterparts in the Asian session on Friday, following
the release of a data showing continued expansion in Chinese
service activity in December.
Survey from Caixin showed that China services PMI rose to 53.9
in December from 53.8 in November. The expected score was 53.
A reading above 50 indicates expansion, while a score below that
shows contraction.
China is the largest trading partner of Australia and New
Zealand.
Investors await the U.S. December jobs report, due later in the
day for clues to the future direction of the world's largest
economy.
U.S. employment is expected to increase by 177,000 jobs in
December after rising by 155,000 jobs in November. The jobless rate
is expected to hold at 3.7 percent.
Also in focus is speech from Federal Reserve Chairman Jerome
Powell, who is due to participate in a joint discussion with former
Fed Chairs Janet Yellen and Ben Bernanke.
The aussie advanced to 2-day highs of 0.7030 against the
greenback and 76.23 against the yen, reversing from its early lows
of 0.6994 and 75.24, respectively. The next possible resistance for
the aussie is seen around 0.72 against the greenback and 77.5
against the yen.
The aussie climbed to a 2-day high of 1.6209 against the euro,
from a low of 1.6306 hit at 8:00 pm ET. The aussie is likely to
find resistance around the 1.60 level.
Reversing from its early lows of 1.0459 against the kiwi and
0.9431 against the loonie, the aussie edged up to 1.0502 and
0.9481, respectively. The aussie is poised to find resistance
around 1.06 against the kiwi and 0.96 against the loonie.
The kiwi firmed to 2-day highs of 0.6707 against the greenback
and 72.69 against the yen, from its early lows of 0.6676 and 71.84,
respectively. If the kiwi rises further, 0.685 and 74.00 are
possibly seen as its next resistance levels against the greenback
and the yen, respectively.
The kiwi reversed from an early low of 1.7075 against the euro
and appreciated to 1.6992. The kiwi is seen finding resistance
around the 1.68 region.
Looking ahead, PMIs from major European economies, U.K. mortgage
approvals data and Eurozone PPI for November and Eurozone flash CPI
for December are due in the European session.
In the New York session, U.S. and Canadian jobs data for
December are scheduled for release.
At 10:15 am ET, Federal Reserve Chair Jerome Powell participates
in a panel discussion titled "Federal Reserve chairs: Joint
Interview" at the American Economic Association's Annual Meeting in
Atlanta.
At the same time, Federal Reserve Bank of Atlanta President
Raphael Bostic will participate in a panel discussion titled "The
Future of Traditional Banking" at the American Economic
Association's Annual Meeting in Atlanta.
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