The Australia and New Zealand dollars strengthened against the other major currencies in the Asian session on Wednesday, after final data showed that Chinese manufacturing sector rose more than expected in December.
Data from HSBC Holdings Plc and Markit Economics showed that China’s manufacturing sector slipped into contraction in December, posting a revised PMI score of 49.6.
That was up from the preliminary reading of 49.5 earlier this month, although it was down from 50.0 in November. It also moved below the boom-or-bust line of 50 that separates expansion from contraction.
In economic news, data from the Reserve Bank of Australia showed that private sector credit in Australia rose at a slower rate in November. Private sector credit rose 0.5 percent month-over-month in November, compared to October’s 0.6 percent increase. This was in line with the consensus estimate.
On a yearly basis, private sector credit climbed 5.9 percent in November compared to a 3.7 percent increase in the same period last year. Housing credit jumped 7.1 percent year-on-year, business sector advanced 4.6 percent and personal credit was up 1.1 percent.
Meanwhile, broad money was up 0.3 percent month-over-month, with M3 rising 0.4 percent. Annually, broad money climbed 7.4 percent, with the M3 component up 7.6 percent.
On Tuesday, the Australia and NZ dollars traded higher. The Australian dollar rose 0.50 percent against the U.S. dollar and 1.78 percent against the euro. Meanwhile, the NZ dollar rose 0.62 percent against the U.S. dollar and 0.45 percent against the euro.
In the Asian trading today, the Australian dollar rose to more than a 3-week high of 1.4809 against the euro and a 2-week high of 0.8214 against the U.S. dollar, from yesterday’s closing quotes of 1.4846 and 0.8181, respectively.
If the aussie extends its uptrend, it is likely to find resistance around 1.45 against the euro and 0.83 against the greenback.
Against the NZ dollar, the aussie climbed to a 2-day high of 1.0468 from yesterday’s closing quote of 1.0440. The aussie may test resistance around the 1.05 area.
The aussie, which ended yesterday’s deals at 0.9496 against the Canadian dollar and 97.67 against the yen, edged up to 0.9523 and 97.99, respectively. On the upside, 0.97 against the loonie and 99.50 against the yen are seen as the next resistance levels for the aussie.
The NZ dollar also rose to 0.7846 against the U.S. dollar and 93.65 against the yen in the Asian trading, from yesterday’s closing quotes of 0.7828 and 93.49, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 0.79 against the greenback and 94.50 against the yen.
Against the euro, the kiwi edged up to 1.5501 from yesterday’s closing quote of 1.5523. If the kiwi extends its uptrend, it is likely to breach yesterday’s multi-month high of 1.5497.
Looking ahead, U.S. weekly jobless claims for the week ended December 27, U.S. Chicago PMI for December and pending home sales for November are due to be released in the New York session.
The material has been provided by InstaForex Company – www.instaforex.com