Aussie benefits from services surveys
On Friday, the Australian dollar held its gains, driven by a positive services survey as well as downbeat services PMI in China. Meanwhile, the Japanese yen traded in rather a narrow range right after wage data.
The currency pair AUD/USD was worth 0.7237, showing a 0.11% rise, while USD/JPY traded at 108.87, staying flat. As for EUR/USD, this currency pair dropped 0.02%, trading at 1.1151.
In China, the Caixin services PMI edged down to 51.2, which was below the expected 52.0 in May as well as down from 51.8 in April.
A bit earlier in Australia the AIG services index leapt to 51.5 for May. That’s lower than 49.7 in April.
In May, capacity utilization tumbled, while price measures remain muted, thus pointing out to the lack of inflation pressure.
May’s return of the large services sector to expansion appears to be an obvious sign of the resilience of the Australian economy even as it keeps transitioning in the wake of dropping mining-related investment as well as lower terms of trade.