We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
Oil - US Crude
More View more
Real Time News
  • $GBP: Yesterday’s YouGov MRP poll highlighted that the projected Conservative majority had narrowed from 359 to 339. Get your market update from @JMcQueenFX here: https://t.co/OsniVa6nk7 https://t.co/qaINQQwEMD
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.02%, while traders in US 500 are at opposite extremes with 76.01%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/F2ZGnDGNHP
  • Brazil cuts lending rates to all-time low at 4.50 percent as expected. BCB sees a gradual economic recovery, says global outlook is relatively favorable for emerging markets - BBG #brazil #BCB #Ibovespa
  • Brazil benchmark rate lending rate cut 50 bps to 4.50% $USDBRL
  • LIVE IN 30 MIN - Join @JohnKicklighter at for live coverage of the #FOMC rate decision and its impact on #Dollar as well as the broader financial #markets - https://t.co/nxPWwCiRf3
  • US Equity Update (Wednesday Close): $DJI +0.10% $SPX +0.28% $NDX +0.63% $RTY +0.10% $VIX -3.06%
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.02% US 500: -0.03% Germany 30: -0.13% France 40: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/JLnVU94v5n
  • Inflation? What? Where? Just about everywhere but the headline CPI figure and in places that actually hit American pockets. https://t.co/5I61Le3UNV
  • ...interest/concern specifically in the Repo Market (according to Google search is the highest since they have records back to 2004 https://t.co/J2sTOVZOQX
  • RT @lisaabramowicz1: The Fed isn't worried about repo disruptions heading into yearend. Repo operations have “gone well so far," and “pres…
Australian Dollar Ticks Down Along With Caixin China PMI Data

Australian Dollar Ticks Down Along With Caixin China PMI Data

2017-04-06 04:04:00
Daniel Dubrovsky, Analyst

Talking Points:

  • Australian Dollar fell as multiple Caixin PMI measurements showed growth slowing down
  • Services and composite PMIs declined to their lowest readings since September 2016
  • A meeting of US and China’s Presidents complicate things for the risk-sensitive Aussie

Have a question about trading the markets? Join a Q&A webinar and ask it live!

The Australian Dollar ticked lower against its major counterparts following the release of the Caixin PMI readings. Note that a report above 50 indicates expansion while a reading below 50 points to a contraction.

The private sector composite measurement clocked in at 52.1 in March compared to 52.6 in February. Meanwhile, the services reading dropped to 52.1 from 52.6 prior. This marks a third month in a row that the services PMI recording declined from the 2016 high of 53.4 in December. Both of these figures fell to their lowest levels since September 2016, a 6-month low.

Since China is Australia’s largest trading partner, economic news-flow from the former country often implies knock-on effects on the latter, triggering a response from the currency. The descent in the PMI measurements also does not bode well for China’s aspiration to become a more consumption-based economy like its G10 brethren.

Looking ahead, President Donald Trump’s meeting with China’s counterpart Xi Jinping today stands to be one of the more relevant risks for sentiment. As Senior Currency Strategist Ilya Spivak mentioned, worries about escalating tensions between the world’s top two economies may weigh on market-wide risk appetite. One of the more sensitive currencies to such noise can be the relatively higher-yielding Australian Dollar.

Australian Dollar Ticks Down Along With Caixin China PMI Data

Chat created in TradingView

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.