China’s RatingDog Services PMI eases in June: What 54.1 means for Australian Dollar
China's Services Purchasing Managers' Index (PMI) declined to 54.1 in June from 54.4 in May, the latest data published by RatingDog showed on Friday.
This figure still marked the third-steepest increase in services activity in nearly three years. Services exports grew for a second consecutive month, expanding at the fastest rate since October 2024.
The Chinese proxy, the Australian Dollar (AUD), remains strong following the weaker Chinese data, with AUD/USD gaining 0.08% on the day to 0.6930, as of writing.
What do China’s RatingDog Services PMI data mean for the Australian Dollar?
China’s Services PMI is a leading indicator gauging business activity in China’s services sector. The data is derived from surveys of senior executives at both private-sector and state-owned companies. This reading is closely watched by traders, as China is Australia's largest trading partner.
While the report does not directly determine the Reserve Bank of Australia (RBA) decisions, but they can affect the Australian economy through trade and commodity channels.
Stronger-than-expected PMI readings signals stronger business activity and economic growth in China, which could lift the China-proxy Aussie as risk sentiment improves. On the other hand, weaker-than-expected readings could indicate slowing economic activity and weigh on the AUD.
Technical Analysis: AUD/USD keeps the bearish vibe under 100-day MA
In the daily chart, AUD/USD keeps a bearish near-term tone as spot holds below the Bollinger middle band (20-day simple moving average) and the 100-day moving average. The pair is consolidating after its recent pullback from the highs, with the Relative Strength Index (14) hovering near 39, hinting at lingering downside pressure rather than an immediate oversold bounce.
On the topside, initial resistance is now aligned with the 20-day simple moving average near 0.6975, followed by the 100-day moving average around 0.7073 and the Bollinger upper band close to 0.7105. On the downside, the Bollinger lower band near 0.6847 forms the next notable support, and a break below this floor would open the door to a deeper extension of the current corrective phase.
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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