SYDNEY: The Australian and New Zealand dollars took a breather on Friday after a week of choppy trading, with a disappointing survey on Chinese manufacturing providing another reason for caution.
China’s official purchasing managers’ index (PMI) unexpectedly slipped into contraction at 49.5 in May, a blow to hopes the Asian giant was finally picking up steam.
Much now depends on a key reading of US inflation due later in the session that could make or break the case for a Federal Reserve rate cut as early as September.
The Aussie was flat at $0.6633, after edging up 0.3% overnight, little changed on the week after ricocheting between support at $0.6591 and resistance around $0.6680.
The kiwi dollar was a shade firmer at $0.6121, having bounced from a $0.6090 low the previous session. Resistance lies at the recent 10-week top of $0.6170, with support at $0.6084.
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