With hopes that the trade conflict between the United States and China might soon be ended with an agreement between the two nations, the Australian Dollar moved higher during Wednesday trade. Reports that there have been some positive action in the talks has helped to support Antipodean currencies like the Aussie and Kiwi Dollars, as well as the China Yuan. The Aussie Dollar, especially, is viewed as a proxy for the Chinese economy, given Australia's strong trading ties with China. At the same time, data on factory activity has also been encouraging, resulting in a rally in the Asian equities market.
As reported at 11;23 am (GMT) in London, the AUD/USD was trading higher at $0.712, a gain of 0.7386% and not far from the session peak of $0.71269 while the low was recorded at $0.70546. The NZD/USD was trading at $0.6798, up 0.6217%; the pair has ranged from a trough of $0.67440 to a peak of $0.67999 in today's session.
Upbeat PMIs Lift Euro
In the Eurozone, Markit surveys of activity was generally upbeat. In France, Markit reported that the Services sector and the Composite PMI reports were both better than expected, while in Germany, the Composite PMI just missed expectations of 51.5 with a reading of 51.4. Overall, the Eurozone reports showed Services Sector with a reading of 53.3 against a forecast of 52.7, while the Composite reading came in at 51.6 against a predicted 51.3. The news was enough to provide a lift to the EUR/USD which is trading at $1.1246, a gain of 0.3901% and off the session peak of $1.12547.