Chinese Services PMI data helped provide a further boost for the Australian Dollar today, making a 4th consecutive bullish close a more likely outcome.
Expected to come in at 51 (with over 50 suggesting sector expansion) it beat the consensus to print 52, a 3-month high. China's manufacturing sector contracted in October according to official numbers earlier this week but, as it contracted slower than expected, was taken as a positive by the markets. Today's Services PMI only added to the bullish sentiment for AUD and NZD crosses and has helped the Aussie remain near its 5-day high.
Currently trading around 72c, it is still being supported by yesterday's slightly hawkish RBA statement which saw it as the only major currency to outpeform the Greenback by the end of the session.
Traders will now shift their focus to US Services PMI data and employment data overnight, where soft data could see the Aussie test 0.7250 and print a fresh 5-day high. However I would be surprised to see this level break as we meet several technical levels of resistance, which includes the bearish trendline from the Sep '14 high. This will be a closely watched area on any traders charts so likely to prompt profit taking and the obligatory sell-off if this milestone is reached.
China Services PMI gives AUD an extra boost
Services PMI may have helped the Aussie en route to close higher for a 4th consecutive session, when traders will then shift focus to the US PMI and employment data.