Aussie steady at start of week
February 1, 2021SharePrint
The Australian dollar has posted small losses on Monday. Currently, AUD/USD is trading at 0.7628, down 0.13% on the day. AUD/USD enjoyed its best week since October, with gains of just under 1 percent.
Australian numbers were mixed at the start of the week. The Melbourne Institute Inflation Gauge, which tracks inflation on a monthly basis, slowed to 0.2% in January, falling to a 3-month low. There was better news from Commodity Prices, which jumped 19.7%, its highest level since August 2017.
China released its PMI reports, which pointed to slower activity in January. The Manufacturing PMI fell to 51.3, down from 51.9. The Non-Manufacturing PMI showed a deeper slide, falling from 55.7 to 52.4, which was a 10-month low. The PMIs remain in expansionary territory, with readings above the neutral 50 level, but a resurgence in Covid-19 in China has led to slower expansion for the Asian giant. That could mean trouble for the Australian dollar, as China is Australia’s largest trading partner.