Australian, NZ Dollars Advance After Strong China Data
The Australian and New Zealand dollars climbed against their
major counterparts in the Asian session on Monday amid rising risk
appetite, as official data released over the weekend showed that
China's factory activity returned to growth in November for the
first time in seven months.
The data helped offset worries that tensions between the U.S.
and China over Hong Kong could impact the ongoing trade talks.
A private survey of Chinese factory activity in November
released today also came in stronger than expected, offering a
glimmer of hope that the world's second-largest economy may be able
to hold in check its slide toward sub-6% growth.
Data from the Australian Bureau of Statistics showed that
Australia building approvals fell a seasonally adjusted 8.1 percent
on month in October - coming in at 13,049.
That missed forecasts for a decline of 1.0 percent following the
7.2 percent gain in September.
Separate data showed that Australia company operating profits
dropped a seasonally adjusted 0.8 percent on quarter in the third
quarter of 2019. That missed expectations for an increase of 1.0
percent following the 4.5 percent gain in the previous three
The aussie advanced to near a 3-week high of 74.34 against the
yen, after falling to 74.04 at 5:30 pm ET. The aussie may find
resistance around the 76.00 level.
Survey from Nikkei showed that Japan manufacturing PMI continued
to contract in November, albeit at a slower pace, with a
manufacturing PMI score of 48.9.
That's up from 48.4 in October, although it remains solidly
beneath the boom-or-bust line of 50 that separates expansion from
The aussie edged up to 0.6778 against the greenback, 1.6257
against the euro and 0.9007 against the loonie, from its early lows
of 0.6762, 1.6294 and 0.8977, respectively. If the aussie rises
further, 0.70, 1.60 and 0.92 are likely seen as its next resistance
levels against the greenback, the euro and the loonie,
The kiwi climbed to a 4-week high of 0.6452 against the
greenback and a 4-month high of 70.75 against the yen, coming off
from its previous lows of 0.6424 and 70.37, respectively. Next key
resistance for the kiwi is seen around 0.66 against the greenback
and 72.00 against the yen.
Reversing from its early lows of 1.7149 against the euro and
1.0526 against the aussie, the kiwi appreciated to near a 3-month
high of 1.7073 and a 3-1/2-month high of 1.0497, respectively. The
kiwi is seen finding resistance around 1.68 against the euro and
1.03 against the aussie.
Looking ahead, at 2:30 am ET, Swiss retail sales data for
October is set for release.
PMI reports from major European economies are due out in the
At 9:00 am ET, European Central Bank President Christine Lagarde
will testify before the European Parliament in Brussels.
In the New York session, U.S. ISM manufacturing PMI for November
and construction spending data for October will be featured.
AUD vs US Dollar (FX:AUDUSD)
From Jul 2020 to Aug 2020
AUD vs US Dollar (FX:AUDUSD)
From Aug 2019 to Aug 2020