Currency Analyst since 2010

Aug. 5: Asian session

Asian shares were under pressure after HSBC’s of China’s services industries fell to a record low of 50 points from the previous reading of 53.1. This piece of data has worsened the market’s mood which was quite positive following upbeat US earnings and relief over Portugal’s rescue of its largest bank.

AUD/USD edged a bit higher, testing the $0.9340 mark to the upside. Australia June trade deficit came out lower than expected at 1.68B (forecast: 2.00B). As it was widely expected, RBA left interest rates unchanged at 2.50%, maintaining the neutral monetary policy stance. Chinese PMI was poor, but according to the RBA statement, the overall outlook for the Chinese economy is positive. NZD/USD consolidates in the $0.8500/25 range. There is a Global Dairy Trade auction today in New Zealand (12:00 GMT).

USD/JPY edged down testing levels below 102.50. EUR/USD is little changed in the $1.3420 area. GBP/USD edged up to $1.6870.

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