News & Analysis at your fingertips.

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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here:
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here:
  • Take a closer look visually at the most influential global importers and exporters here:
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here:
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here:
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here:
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here:
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here:
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
Australian Dollar Firms As China Services PMI Bounces Back

Australian Dollar Firms As China Services PMI Bounces Back

David Cottle, Analyst

Australian Dollar, China Caixin Service Purchasing Managers Index Talking Points:

  • China’s Caixin March Service PMI hit 43.0, well above the previous month’s 26.5
  • This strong performance mirrors the official PMI series already released
  • AUD ticked up, but market risk sentiment remains extremely fragile

The Australian Dollar made modest gains Friday on news that China’s private service sector saw a big March bounce in activity even if overall output continued to fall.

The March Purchasing Managers Index from media group Caixin came in at 43.0, hugely above both the 29.0 print expected and February’s miserable record low of 26.5. PMI releases indicate output expansion if they come in above the 50 line.

These data mirror the remarkable return to expansion territory seen by the private manufacturing sector and, perhaps more importantly, state-linked heavy industry last month. Taken together with the Caixin manufacturing release, the March composite PMI is 46.7, above February’s 27.5.

Of course, markets are concerned with the global spread of coronavirus which continues to claim lives and shut down economic activity, but these Chinese numbers suggest that there at least economic conditions may be normalizing somewhat, even if markets are sceptical that this can be a lasting phenomenon so soon.

The Australian Dollar often acts as the foreign exchange market’s favorite liquid Chinese-economy bet thanks to Australia’s vast and complex trading links to China. It seems to have done so to some extent on Friday, heading up right after the release.

Australian Dollar Vs US Dollar, 5-Miinute Chart

As perhaps the most obviously growth-linked widely traded currency the Australian Dollar has of course been pummelled this year as the spread of coronavirus has bitten hard into global prospects.

Australian Dollar Vs US Dollar, Daily Chart

Beaten down to near-eighteen-year lows against the US Dollar, the Aussie benefited from the risk revival which accompanied various massive governmental stimulus and monetary easing programs around the world, notably of course the US’ two-trillion dollar scheme.

Still, Australia saw two interest rate reductions last month as part of its contribution to the fight, and may well see another next week which would take the key Official Cash Rate down to zero for the first time.

In such an environment it is very hard to see the currency making substantive gains until there are conclusive signs that the spread of contagion has been headed off. That’s not coming anytime soon.

Australian Dollar Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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