Investing.com – The Australian dollar remained weaker against the U.S. dollar on Friday in Asia after U.S. treasury yields rose to their highest since July 2011 and an index measuring China's services economy weakened in December.
The benchmark 10-year yield rose to 3.071% boosting the dollar against most major currencies as higher yields make dollar dominated assets more attractive.
AUD/USD traded at 0.8895, down 0.18%, while USD/JPY traded at 104.83 up 0.02% with Japanese markets remain closed on Friday.
Chinese Non-Manufacturing PMI for December fell to 54.6 in December from 56 in November with new export orders down to 49.4 from 49.9, pointing to still reasonable growth prospects for China's services sector following the release of the CFLP manufacturing PMI on Wednesday which saw December down to 51.0 from the previous month's 51.4.
China is a key destination for Australian exports.
Elsewhere the U.S. dollar traded higher against most major currencies on Thursday after U.S. weekly jobless claims fell while a widely-watched U.S. factory barometer met market forecasts and cemented expectations for the Federal Reserve to continue winding down stimulus programs. The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Dec. 28 declined by 2,000 to a seasonally adjusted 339,000.
Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week’s revised total of 341,000, though investors still applauded the decrease.
The Institute for Supply Management reported that its purchasing managers' index dipped to 57.0 last month from 57.3 in November, in line with expectations.
The data fueled market sentiments for the Federal Reserve to continue dismantling its USD75 billion in monthly bond purchases this year.
Fed asset purchases aim to drive recovery by suppressing long-term borrowing costs, weakening the dollar as long as they remain in effect.
Meanwhile in the euro zone, the London-based Markit Economics research group said its final manufacturing purchasing managers' index for the bloc remained unchanged at 52.7 last month, in line with expectations.
A separate report showed that Germany's manufacturing PMI rose to a 30-month high of 54.3 in December from 54.2 in November, beating consensus forecasts for an unchanged reading.
France's manufacturing PMI fell to a seven-month low of 47.0 in December, from 47.1 in November, compared to expectations for the index to remain unchanged.
Still, risk appetite took a hit after a report showed that China’s final HSBC PMI inched down to 50.5 in December from a reading of 50.8 in November, which bolstered the greenback's safe-haven appeal.
The data came a day after a government report showed that China’s manufacturing PMI fell to a four-month low of 51.0 last month from 51.4 in November and worse than forecasts for a decline to 51.2.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.06% at 80.76.
The benchmark 10-year yield rose to 3.071% boosting the dollar against most major currencies as higher yields make dollar dominated assets more attractive.
AUD/USD traded at 0.8895, down 0.18%, while USD/JPY traded at 104.83 up 0.02% with Japanese markets remain closed on Friday.
Chinese Non-Manufacturing PMI for December fell to 54.6 in December from 56 in November with new export orders down to 49.4 from 49.9, pointing to still reasonable growth prospects for China's services sector following the release of the CFLP manufacturing PMI on Wednesday which saw December down to 51.0 from the previous month's 51.4.
China is a key destination for Australian exports.
Elsewhere the U.S. dollar traded higher against most major currencies on Thursday after U.S. weekly jobless claims fell while a widely-watched U.S. factory barometer met market forecasts and cemented expectations for the Federal Reserve to continue winding down stimulus programs. The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Dec. 28 declined by 2,000 to a seasonally adjusted 339,000.
Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week’s revised total of 341,000, though investors still applauded the decrease.
The Institute for Supply Management reported that its purchasing managers' index dipped to 57.0 last month from 57.3 in November, in line with expectations.
The data fueled market sentiments for the Federal Reserve to continue dismantling its USD75 billion in monthly bond purchases this year.
Fed asset purchases aim to drive recovery by suppressing long-term borrowing costs, weakening the dollar as long as they remain in effect.
Meanwhile in the euro zone, the London-based Markit Economics research group said its final manufacturing purchasing managers' index for the bloc remained unchanged at 52.7 last month, in line with expectations.
A separate report showed that Germany's manufacturing PMI rose to a 30-month high of 54.3 in December from 54.2 in November, beating consensus forecasts for an unchanged reading.
France's manufacturing PMI fell to a seven-month low of 47.0 in December, from 47.1 in November, compared to expectations for the index to remain unchanged.
Still, risk appetite took a hit after a report showed that China’s final HSBC PMI inched down to 50.5 in December from a reading of 50.8 in November, which bolstered the greenback's safe-haven appeal.
The data came a day after a government report showed that China’s manufacturing PMI fell to a four-month low of 51.0 last month from 51.4 in November and worse than forecasts for a decline to 51.2.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.06% at 80.76.