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Australian, NZ Dollars Advance After Strong China Data

The Australian and New Zealand dollars climbed against their major counterparts in the Asian session on Monday amid rising risk appetite, as official data released over the weekend showed that China's factory activity returned to growth in November for the first time in seven months.

The data helped offset worries that tensions between the U.S. and China over Hong Kong could impact the ongoing trade talks.

A private survey of Chinese factory activity in November released today also came in stronger than expected, offering a glimmer of hope that the world's second-largest economy may be able to hold in check its slide toward sub-6% growth.

Data from the Australian Bureau of Statistics showed that Australia building approvals fell a seasonally adjusted 8.1 percent on month in October - coming in at 13,049.

That missed forecasts for a decline of 1.0 percent following the 7.2 percent gain in September.

Separate data showed that Australia company operating profits dropped a seasonally adjusted 0.8 percent on quarter in the third quarter of 2019.

That missed expectations for an increase of 1.0 percent following the 4.5 percent gain in the previous three months.

The aussie advanced to near a 3-week high of 74.34 against the yen, after falling to 74.04 at 5:30 pm ET. The aussie may find resistance around the 76.00 level.

Survey from Nikkei showed that Japan manufacturing PMI continued to contract in November, albeit at a slower pace, with a manufacturing PMI score of 48.9.

That's up from 48.4 in October, although it remains solidly beneath the boom-or-bust line of 50 that separates expansion from contraction.

The aussie edged up to 0.6778 against the greenback, 1.6257 against the euro and 0.9007 against the loonie, from its early lows of 0.6762, 1.6294 and 0.8977, respectively. If the aussie rises further, 0.70, 1.60 and 0.92 are likely seen as its next resistance levels against the greenback, the euro and the loonie, respectively.

The kiwi climbed to a 4-week high of 0.6452 against the greenback and a 4-month high of 70.75 against the yen, coming off from its previous lows of 0.6424 and 70.37, respectively. Next key resistance for the kiwi is seen around 0.66 against the greenback and 72.00 against the yen.

Reversing from its early lows of 1.7149 against the euro and 1.0526 against the aussie, the kiwi appreciated to near a 3-month high of 1.7073 and a 3-1/2-month high of 1.0497, respectively. The kiwi is seen finding resistance around 1.68 against the euro and 1.03 against the aussie.

Looking ahead, at 2:30 am ET, Swiss retail sales data for October is set for release.

PMI reports from major European economies are due out in the European session.

At 9:00 am ET, European Central Bank President Christine Lagarde will testify before the European Parliament in Brussels.

In the New York session, U.S. ISM manufacturing PMI for November and construction spending data for October will be featured.

For comments and feedback contact: editorial@rttnews.com

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