2019.11.0107:11:00UTC+00Australian, NZ Dollars Advance After Encouraging China Data

The Australian and the New Zealand dollars strengthened against their major opponents in the Asian session on Friday, as Chinese manufacturing sector expanded at the fastest pace since early 2017 in October.

Data from IHS Markit showed that the Caixin manufacturing Purchasing Managers' Index rose unexpectedly to 51.7 from 51.4 in September. The reading was forecast to drop to 51.0. A score above 50 indicates expansion.

The Labor Department's closely watched monthly jobs report is also in focus, overshadowing separate reports on manufacturing activity and construction spending.

U.S. employment is expected to increase by 88,000 jobs in October after an increase of 136,000 jobs in September. The unemployment rate is seen rising to 3.6 percent from 3.5 percent.

Data from the Australian Bureau of Statistics showed that Australia producer prices rose 0.4 percent on quarter in the third quarter of 2019 - matching expectations and unchanged from the three months prior.

On a yearly basis, producer prices were up 1.6 percent - shy of expectations for 2.0 percent, which would have been unchanged.

The latest survey from the Australian Industry Group showed that Australia manufacturing sector continued to expand in October, albeit at a slower rate, with a seasonally adjusted Performance of Manufacturing Index score of 51.6.

That's down from 54.7 in September, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The aussie rose to 0.6910 against the greenback and 74.65 against the yen, from its early lows of 0.6884 and 74.36, respectively. The currency is seen finding resistance around 0.71 against the greenback and 76.5 against the yen.

The aussie advanced to 1.6158 against the euro and 0.9091 against the loonie, off its early lows of 1.6197 and 0.9066, respectively. On the upside, 1.60 and 0.92 are likely seen as its next resistance levels against the euro and the loonie, respectively.

The kiwi climbed to near a 2-month high of 0.6442 against the greenback, 8-day high of 1.7329 against the euro and a weekly high of 1.0722 against the aussie, reversing from its previous lows of 0.6407, 1.7402 and 1.0750, respectively. Next key resistance for the kiwi is seen around 0.66 against the greenback, 1.70 against the euro and 1.05 against the aussie.

The kiwi appreciated to 69.60 against the yen, rebounding from a low of 69.20 hit at 8:15 pm ET. The kiwi is likely to face resistance around the 73.00 region, if it gains again.

Looking ahead, U.K. manufacturing PMI for October, Swiss CPI for the same month, retail sales for September and SVME manufacturing PMI for October are due in the European session.

In the New York session, U.S. jobs data and ISM manufacturing index for October, as well as construction spending data for September will be featured.