Release of weaker than forecast China PMI data (50.4 vs consensus 52.0 and Apr 53.8) provided the early impetus to take AUD/USD through Thursday’s local low of $0.9673, breaking under the late November low of $0.9664 before basing at $0.9648. Rate recovered to $0.9695, aided in part by reported heavy USD sell interventions in dollar-Asia, with Japanese officials out in force to warn of decisive action. Rate then settled between $0.9680/90 into the european session. Some hangover of month end dollar demand expected to be around into Europe, though this afternoon’s key US Employment Report release likely to subdue markets. Determination of risk remains driven by headlines, especially concerning Spain and Greece.
EasyForexNews Research Team