Forex Marketz Daily Forex News – Fully Markets Update
The Aussie dollar moved lower, this morning, against all of its major G-20 currency partners after the Chinese Caixin PMI data. Traders should note, that in this type of data release, a print above 50 indicates expansion while a print below 50 points to a contraction.
The Caixin, private sector composite printed at 52.1 in March compared to 52.6 in February. The services sector reading dropped to 52.1 from the 52.6 in the prior month. This is the third month in a row that the services PMI has declined from the 2016 high of 53.4 reached in December. Both of these metrics have fallen to their lowest levels since September 2016. Which is also a new six month low.
Aussie Dollar takes a hit this Morning
China is Australia’s largest trading partner, in the region, especially for raw materials and the Aussie dollar routinely acts as a surrogate for the Chinese economy. As you can note, from the above MT 4 15 minute chart, there was a strong response from the Aussie after the data crossed the news wires. The weak PMI measurements is not a good sign as China wants to change its economy into a consumption based one like the other G-10 nations.
On today’s calendar, President Donald Trump is meeting with China’s President Xi Jinping. This summit stands to be one of the more relevant risks for sentiment for the remainder of the week. There is investor worries that are mounting, over a possible trade and currency war between these two countries. One of the more sensitive global G-10 currencies that will be effected is the higher-yielding Aussie Dollar.
