- AUD/USD prints fresh session highs above 0.71 following the release of an above-forecast China services PMI number.
- Upbeat Aussie data released earlier today coupled with the talk of US-China closing on a trade deal and risk-on action in equities could keep the AUD better bid during the day ahead.
The already buoyed AUD/USD extended gains to a fresh session high of 0.7104 soon before press time, possibly in response to a better-than-expected China services PMI data.
The widely-tracked gauge of sector activity in the world’s second-largest economy rose to 54.4 index points in March, beating an expected rise to 52.3 index points from February’s reading of 51.1 index points. Put simply, the sector activity expanded at a faster than expected rate last month.
The AUD, therefore, is looking to extend the 40-pip rally seen post the release of the better-than-expected Aussie retail sales and trade data. As of writing, AUD/USD is flashing green at 0.71.
Looking forward, the currency pair may extend gains as upbeat China manufacturing PMIs released earlier this week seem to have triggered speculation that the global industrial cycle is on the verge of picking up.
Also, supporting the bullish case in AUD/USD is the talk of US-China trade deal and the risk-on action in the equities. At press time, the futures on the S&P 500 index are reporting a 0.32 percent rise.
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