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Forex - Australian dollar weaker in Asia after services survey drops

Published 04/02/2014, 07:13 PM
Updated 04/02/2014, 07:17 PM
Australian dollar edges weaker in Asian trade
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Investing.com - The Australian dollar edged a tad weaker in Asia on Thursday after a privcate survey showed the services sector falling back into contraction.

AUD/USD traded at 0.9245, down 0.03%, after AI Group said Australia's services sector fell 6.3 points to 48.9 to contraction in March, dropping from expansion for the first time in two years in February.

At 1130 (0030 GMT), Australia's February trade balance and retail sales data are due and expected to show a 0.3% m/m rise after a strong 1.2% jump in January. The trade data consensus is for a surplus of A$850 mln after an A$1.4 billion surplus in January.

Later in the day, RBA Governor Glenn Stevens is due to give a speech to the American Chamber of Commerce in Australia, in Brisbane at 1300 (0200 GMT).

In China today, the CFLP service PMI is due at 0900 local time (0100 GMT), with the previous figure at 55, followed by the HSBC version of the service PMI at 0945 (0145 GMT) with the previous figure at 51.

USD/JPY traded at 103.87, flat from overnight in a thin data day in Japan.

Overnight, the dollar traded largely higher against most major currencies on upbeat private-sector jobs and factory orders reports fueled hopes for a more sustained U.S. recovery down the road, which sparked demand for the greenback.

Payroll processing firm ADP reported earlier that the U.S. private sector added 191,000 jobs in March, just shy of expectations for a 195,000 reading.

February’s figure was revised up to a gain of 178,000 from a previously reported increase of 139,000, and the overall report bolstered the dollar by fueling hopes Friday's official nonfarm payrolls data will come in solid.

Separately, the Commerce Department said U.S. factory orders jumped 1.6% in February, the biggest increase since September, ahead of forecasts for a 1.2% rise.

The data strengthened the greenback by keeping expectations on track for the Federal Reserve to continue winding monetary stimulus programs this year.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.02% to 80.37.

On Thursday, the U.S. is to publish data on the trade balance and its weekly report on initial jobless claims.

Meanwhile, the Institute for Supply Management is to publish a report service-sector activity.

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