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THE TAKEAWAY: The Australian Dollar reversed its recent rally against the U.S. Dollar despite positive PMI data out of China as gold slumped.
Despite trending higher over the last few days of trading, the Australian Dollar lost ground against its American counterpart in early Asian trading today. After an initial sharp rally as the Australian Trade balance printed at -178 million versus an expectation of -1 billion, the rally in the so called “Aussie” ran out of steam as China reported non-manufacturing and services data.
The data that came out of China saw the non-manufacturing PMI improve from a previous outcome of 54.5 for February to 55.6 in March, and the HSBC Services PMI saw a large improvement from 52.1 in February to 54.3 in March. Regardless, the Australian Dollar was pushed downwards as the ASX200 as well as other Asian markets fell as materials stocks fell on the back of a slump in commodities with gold falling from $1602 earlier in the weak to $1568 per ounce.