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China’s RatingDog Services PMI eases in June: What 54.1 means for Australian Dollar

China's Services Purchasing Managers' Index (PMI) declined to 54.1 in June from 54.4 in May, the latest data published by RatingDog showed on Friday.  

This figure still marked the third-steepest increase in services activity in nearly three years. Services exports grew for a second consecutive month, expanding at the fastest rate since October 2024. 

The Chinese proxy, the Australian Dollar (AUD), remains strong following the weaker Chinese data, with AUD/USD gaining 0.08% on the day to 0.6930, as of writing.

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.

USDEURGBPJPYCADAUDNZDCHF
USD-0.06%-0.09%0.06%-0.04%-0.09%-0.14%-0.06%
EUR0.06%-0.02%0.11%0.01%-0.07%-0.08%0.00%
GBP0.09%0.02%0.13%0.04%-0.05%-0.05%0.03%
JPY-0.06%-0.11%-0.13%-0.08%-0.18%-0.20%-0.11%
CAD0.04%-0.01%-0.04%0.08%-0.10%-0.11%-0.01%
AUD0.09%0.07%0.05%0.18%0.10%-0.00%0.08%
NZD0.14%0.08%0.05%0.20%0.11%0.00%0.08%
CHF0.06%-0.00%-0.03%0.11%0.00%-0.08%-0.08%

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 China’s RatingDog Services PMI data mean for the Australian Dollar?

China’s Services PMI is a leading indicator gauging business activity in China’s services sector. The data is derived from surveys of senior executives at both private-sector and state-owned companies. This reading is closely watched by traders, as China is Australia's largest trading partner.

While the report does not directly determine the Reserve Bank of Australia (RBA) decisions, but they can affect the Australian economy through trade and commodity channels.

Stronger-than-expected PMI readings signals stronger business activity and economic growth in China, which could lift the China-proxy Aussie as risk sentiment improves. On the other hand, weaker-than-expected readings could indicate slowing economic activity and weigh on the AUD.

Technical Analysis: AUD/USD keeps the bearish vibe under 100-day MA

Chart Analysis AUD/USD

In the daily chart, AUD/USD keeps a bearish near-term tone as spot holds below the Bollinger middle band (20-day simple moving average) and the 100-day moving average. The pair is consolidating after its recent pullback from the highs, with the Relative Strength Index (14) hovering near 39, hinting at lingering downside pressure rather than an immediate oversold bounce.

On the topside, initial resistance is now aligned with the 20-day simple moving average near 0.6975, followed by the 100-day moving average around 0.7073 and the Bollinger upper band close to 0.7105. On the downside, the Bollinger lower band near 0.6847 forms the next notable support, and a break below this floor would open the door to a deeper extension of the current corrective phase.

(The technical analysis of this story was written with the help of an AI tool.)

Economic Indicator

RatingDog Services PMI

The RatingDog Services Purchasing Managers Index (PMI), released on a monthly basis by Caixin Insight Group and S&P Global, is a leading indicator gauging business activity in China’s services sector. The data is derived from surveys of senior executives at both private-sector and state-owned companies. 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), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the services economy is generally expanding, a bullish sign for the Renminbi (CNY). Meanwhile, a reading below 50 signals that activity among service providers is generally declining, which is seen as bearish for CNY.

Read more.

Last release: Wed Jun 03, 2026 01:45

Frequency: Monthly

Actual: 54.4

Consensus: 52.3

Previous: 52.6

Source: IHS Markit

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.

Author

Lallalit Srijandorn

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.

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