The AUD/USD pair is trading to the upside, but it has been moving sideways for the last four days.
On Friday, the Australian Dollar is growing against the US Dollar. The current quote for the instrument is 0.7254.
According to the statistics from AiG published today, the business activity index in the service sector in Australia in May increased up to 51.5 points against 49.7 points previously. The fact that the index is now above the level of 50 points, which marks decline and growth, indicates positive sentiments in tertiary industry. Prior to May, the indicator was declining for two months in a row.
It’s highly likely that the weather changes resulted in positive effect in sentiments of shop assistants and customers. The number of new orders is still quite moderate, but one can see a positive trend in supplies and sales.
However, the Chinese statistics prevents the AUD/USD pair from being cheerful and optimistic. For example, the Purchasing Managers' Index from Caixin and Markit Economics in May decreased up to 51.2 points against 51.8 points previously and the predicted number of 52 points. Chinese reports are quite complicated, and Australia along with capital markets are still very interested in the statistics from China.
The Australian Dollar remains at the bottom of the mid-term trading range, despite the current stabilization. China continues stimulating its economic system; the RBA thinks that the national currency is still very expensive and may reduce the interest rate this summer. These three factors are quite negative for the AUD/USD bulls.
RoboForex Analytical Department
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