* Major currencies off to quiet start
* Aussie climbs after China data
* China official PMI beat expectations
By Ian Chua
SYDNEY, June 3 (Reuters) – Most major currencies got off to
a subdued start on Monday, but the Australian dollar rose after
data over the weekend showed factory activity in China was
better than expected, offering hope the world’s second-largest
economy may be stabilising.
The Aussie climbed as high as $0.9640 in thin early
trade, from around $0.9575 late in New York on Friday. It was
last at $0.9607. Support is seen at $0.9528, a 19-month trough
plumbed last month.
The move came after China’s official PMI data, out on
Saturday, rose to 50.8 in May from 50.6 in April, beating market
expectations. China is Australia’s single biggest export market.
“The AUD opened higher this morning on the good news, and
remains the outperformer so far,” said Annette Beacher, head of
Asia-Pacific Research at TDSecurities.
The dollar index, meanwhile, slipped 0.1 percent to
83.297. The euro was flat at $1.2993.
Against the yen, both the dollar and euro were 0.1 percent
higher at 100.54 and 130.64 respectively.
China’s services PMI and HSBC’s final survey that focuses on
smaller private sector firms are due later in the morning.
Also in focus this week is manufacturing data out in Europe
and the United States as well as the all-important U.S.
employment report on Friday.
Investors have warmed to the U.S. dollar since the previous
non-farm payrolls surprised on the upside, spurring talk the
Federal Reserve might start unwinding its massive stimulus
programme sooner rather than later.
Figures on Friday showed currency speculators have raised
their bets in favour of the greenback to the highest since at
least June 2008 in the week ended May 28.
Analysts at BNP Paribas said they were expecting another
upbeat U.S. employment report on Friday.
“While data in line with our estimates would not in itself
warrant an early Fed move to taper asset purchases, it would
still leave risks skewed in favour of less, rather than more,
Fed accommodation and would probably be sufficiently robust to
maintain the overall bullish market consensus with respect to
the USD,” they wrote in a client note.
“We see scope for USD to regain momentum versus the CHF and
JPY coming out of this week, although we are more neutral on the
USD vs. the EUR and commodity bloc currencies.”
