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Forex - Aussie ticks weaker despite upbeat services reading, trade ahead

Published 03/02/2016, 06:03 PM
Updated 03/02/2016, 06:06 PM
Aussie weaker after services
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Investing.com - The Aussie ticked lower on Thursday in Asia despite an upbeat services index reading with trade data also due.

AUD/USD traded at 0.7287, down 0.11%, while USD/JPY changed hands at 113.56, up 0.09%.

In Australia, the AIG services index for February came in at 51.8, reaching expansion after a reading of 48.4 last month.

"While the return to expansion is clearly encouraging the picture painted by the Australian PSI is still one of fragility and vulnerability," AI Group Chief Executive Innes Willox said.

"This should be a warning to policymakers against an excessively restrictive federal budget in May and highlights the room for a targeted lift in
incentives for business investment."

Later, Australia reports exports and imports month-on-month for January with a trade balance deficit seen of A$3.1 billion, down from 3.535 billion the previous month.

The Caixin Services PMI for February is due with a reading of 52.6 seen, up from 52.4 the previous month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 98.20.

Overnight, the dollar continued to trade near one-month highs against the other major currencies on Wednesday, as the release of upbeat U.S. private sector employment data added to optimism over the strength of the economy.

The greenback remained supported after payroll processing firm ADP said non-farm private employment rose by 214,000 last month, surpassing expectations for an increase of 190,000.

The economy created 193,000 jobs in January, whose figure was downwardly revised from a previously reported increase of 205,000.

The data came after a string of upbeat U.S. economic reports, adding to expectations for the Federal Reserve to hike interest rates again this year.
EUR/USD slid 0.37% to 1.0827.

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