THE TAKEAWAY: Chinese service industry grew at slower pace in December > Aussie currency may begin to consolidate prior to U.S. Non-Farm Payroll > AUDUSD traded slightly lower on data
The Australian dollar traded slightly lower as the Chinese service industry grew at a slower pace in December. At 1:48 GMT today the HSBC Services PMI for China was released recording 51.7 in December, down from 52.1 in November. A reading above 50 indicates growth.
China is a large consumer of Australian exports and a slowing services industry may foreshadow reduced demand for Australian mined coal and iron ore which could dampen overall economic growth and prompt central bankers to reduce the Aussie currencies’ most attractive feature – yield.
The high yielding currency may begin to consolidate against the greenback prior to the U.S Non-Farm Payroll data release scheduled for 13:30 GMT later today. Consensus appears to be calling for the U.S economy to add 150,000 jobs in December.
AUD/USD, 1 Minute Chart