Australia’s S&P Global Services PMI beats estimates: Here's what it means for AUD/USD
The final reading of Australia's S&P Global Services PMI came in at 48.7 in May, compared to 50.7 in the previous reading, the latest data published by S&P Global showed on Wednesday. This figure came in better than the estimates of 47.7. Meanwhile, the Composite PMI was revised to 48.7 in May versus 50.4 prior, above the consensus of 47.8.
The Australian Dollar (AUD) edges slightly lower following the final reading of Australia's Services PMI data for May. The services Business Activity Index registered the second contraction in three months amid market uncertainty and higher prices linked to the Middle East conflict. However, the AUD/USD pair holds positive ground near 0.7175, still marginally up from Monday’s closing price at 0.7157.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.06% | -0.04% | 0.19% | -0.01% | -0.24% | 0.15% | 0.19% | |
| EUR | -0.06% | -0.09% | 0.13% | -0.08% | -0.30% | 0.10% | 0.11% | |
| GBP | 0.04% | 0.09% | 0.22% | 0.02% | -0.17% | 0.21% | 0.18% | |
| JPY | -0.19% | -0.13% | -0.22% | -0.20% | -0.42% | -0.04% | -0.04% | |
| CAD | 0.00% | 0.08% | -0.02% | 0.20% | -0.23% | 0.16% | 0.15% | |
| AUD | 0.24% | 0.30% | 0.17% | 0.42% | 0.23% | 0.37% | 0.36% | |
| NZD | -0.15% | -0.10% | -0.21% | 0.04% | -0.16% | -0.37% | -0.02% | |
| CHF | -0.19% | -0.11% | -0.18% | 0.04% | -0.15% | -0.36% | 0.02% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
What do Australia’s S&P Global Services PMI data mean for the Australian Dollar?
Australia’s Services PMI is a leading indicator gauging business activity in Australia’s services sector. The stronger-than-expected figure is seen bullish on the Australian Dollar (AUD).
When a PMI reading lands firmly above the 50.0 expansion line or significantly beats market forecasts, it signals a robust, accelerating domestic economy. Strong economic momentum could reinforce the Reserve Bank of Australia (RBA) to hike the interest rate.
Lately, traders have reduced their bets of further rate hikes from the RBA. Financial markets have dialed back rate hike expectations, pricing in a 95% probability that the Australian central bank will hold the Official Cash Rate (OCR) steady at its June policy meeting, according to the ASX RBA Rate Tracker.
Technical Analysis: AUD/USD keeps the bullish vibe
AUD/USD trades at 0.7175 in the daily chart, keeping a constructive bullish bias as spot holds well above the 100-day exponential moving average (EMA). The pair is consolidating near recent highs, and the Relative Strength Index (RSI) around 52 suggests mildly positive but not overstretched momentum, hinting that buyers retain control while leaving room for further upside attempts.
On the downside, immediate support is located at the 0.7175 area as an intraday pivot, with stronger technical demand emerging at the 100-day EMA near 0.7035, where the broader upswing would be expected to stabilize on deeper pullbacks. As long as AUD/USD defends these underlying supports, the near-term technical structure favors dips being bought rather than a sustained reversal lower.
(The technical analysis of this story was written with the help of an AI tool.)
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Economic Indicator
S&P Global Services PMI
The Services Purchasing Managers Index (PMI), released on a monthly basis by S&P Global, is a leading indicator gauging business activity in Australia’s services sector. The data is derived from surveys of senior executives at private-sector companies from the services sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), employment and inflation. A reading above 50 indicates that the services economy is generally expanding, a bullish sign for the Australian Dollar (AUD). Meanwhile, a reading below 50 signals that activity among service providers is generally declining, which is seen as bearish for AUD.
Read more.Last release: Tue Jun 02, 2026 23:00
Frequency: Monthly
Actual: 48.7
Consensus: 47.7
Previous: 47.7
Source: S&P Global
Author
Lallalit Srijandorn
FXStreet
Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.
