AUD/USD unmoved by China Caixin Services PMI
- AUD/USD is barely moving in response to the below-forecast China Services PMI.
- The pace of expansion in China's service sector slowed in October.
- The AUD is struggling despite the optimism on the US-China trade front.
China's service sector gauge missed expectations by a big margin, but so far, it has failed to move the needle on the Aussie Dollar, a G-7 proxy for China.
The Caixin Services PMI (Oct) came in at 51.1, missing the expected rise to 52.8 from September's 51.3 by a big margin.
The slowdown in the pace of expansion of the sector activity in the world's second-largest economy is being ignored by the markets. The AUD/USD pair has barely moved following the release of the Services PMI at 01:45 GMT and continues to trade near 0.6680, representing a marginal loss on the day.
The Aussie Dollar is flashing red despite the optimism on the US-China trade front. The US is reportedly considering canceling some of the tariffs of $112 billion worth of Chinese imports. Meanwhile, Beijing is asking the US to remove the tariffs in exchange for agreeing to buy up to $50 billion worth of US agricultural goods within two years and open its financial services sector and increase intellectual property protections, according to Politico.
The news has put a bid under the S&P 500 futures and is weighing over Yen. The Aussie, however, is struggling to gather upside traction, possibly due to the dismal domestic data. The CBA October final Australian Services PMI came in at 50.1, missing the preliminary estimate of 50.8 by a big margin.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
