HomeContributorsFundamental AnalysisAustralia's Services Sector Growth Cooled In February

Australia’s Services Sector Growth Cooled In February

For the 24 hours to 23:00 GMT, the AUD marginally declined against the USD and closed at 0.7754 on Friday.

LME Copper prices rose 0.5% or $31.0/MT to $6883.0/MT. Aluminium prices rose 0.1% or $1.0/MT to $2144.0/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7751, with the AUD trading slightly lower against the USD from Friday’s close, after overnight data indicated that Australia’s AiG performance of services index eased to a level of 54.0 in February. In the prior month, the index had recorded a reading of 54.9.

On the contrary, the nation’s seasonally adjusted building approvals climbed 17.1% on a monthly basis in January, exceeding market expectations for a rise of 5.0%. In the previous month, building approvals had dropped by a revised 20.6%.

Elsewhere in China, Australia’s largest trading partner, the Caixin/Markit services PMI fell more-than-expected to a level of 54.2 in February, after recording a nearly 6-year high level of 54.7 in the prior month. Markets were expecting the PMI to drop to a level of 54.3.

The pair is expected to find support at 0.7735, and a fall through could take it to the next support level of 0.7720. The pair is expected to find its first resistance at 0.7769, and a rise through could take it to the next resistance level of 0.7788.

Moving ahead, investors would closely monitor the Reserve Bank of Australia’s interest rate decision, due tomorrow.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

GCI Financial
GCI Financialhttp://www.gcitrading.com/
DISCLAIMER : GCI's Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be used as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

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