Aussie Caught Between High and Low Before GDP, China PMI Reportsby
The Aussie dollar was caught between a two-week high and a three-month low as traders wait to see how much the economy expanded in the first quarter.
Australia’s currency held gains against most of its major counterparts after a report Tuesday showed net exports contributed 1.1 percentage points to gross domestic product. China, Australia’s biggest trading partner, will release its manufacturing purchasing managers index for last month. Both pieces of data could provide clues as to whether the Reserve Bank will keep interest rates at a record low next week.
“During Asian trading hours, Chinese PMI and Australian GDP will be the focus,” Hiroyuki Yamamuro, an analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services, wrote in a note to clients. “We also need to monitor stocks to gauge risk sentiment.”
The Aussie was little changed at 72.36 U.S. cents as of 9:55 a.m. in Sydney from Tuesday, when it climbed 0.7 percent, the biggest gain since May 2. New Zealand’s currency advanced 0.3 percent to 67.83 U.S. cents.
Australia’s economy expanded 2.8 percent during the first quarter from a year ago, according to the median of 27 estimates in a Bloomberg survey of analysts taken before the data’s release Wednesday. The figure could come out weaker than expected, Daniel Katzive, the head of foreign-exchange strategy for North America at BNP Paribas SA, wrote in a note to clients.