The Aussie Dollar was put under some pressure after the release of China’s PMI results show an unexpected shrinkage in manufacturing activity last month. The Caixin survey showed a reading of 49.6 in May, down from 50.3 in April and off the analysts’ forecasts of a decline to 50.1. For reference, any reading below the 50.0 threshold signals contraction in the sector while a number above it indicates expansion. The Caixin report is at odds with Wednesday’s release of the government’s NBS report which reported a reading of 51.2; the Caixin focuses primarily on smaller firms, however.
As reported at 11:05 am (BST) in London, the AUD/USD was trading at $0.74, down 0.37%; the pair ranged from $0.7396 to $0.7454 in today’s trading. The NZD/USD was likewise down at $0.7078, down 0.09%; the pair had earlier hit a session trough of $0.7063 while the peak was at $0.7089.
Uncertainty Impacting Sterling Momentum
The Pound Sterling continues to experience heavy volatility as the upcoming national election looms. Uncertainty over whether or not the Conservatives will maintain a majority of seats is the biggest question, with the latest polls showing either a narrowing gap or a solid win. Most analysts are forecasting that Theresa May’s party will take the win though investors continue to be wary and have pushed the Pound only marginally higher than last week’s lows. Currently, the GBP/USD is trading at $1.2834, down 0.30% while the EUR/GBP is at 0.8753 Pence, a gain of 0.22%.