AUDUSD is trading at a lower level as Australian PMIs fall

The AUDUSD prints its first daily loss in three days at 0.6670, while the weekly loss is expected early Friday. In doing so, the Australian pair justifies its risk barometer position as well as the country’s negative activity figures.

Australia PMIs was lower in March, weighing on the AUDUSD amid gloomy sentiment.

Earlier in the day, preliminary readings of Australia’s S&P Global PMIs for March fell into the contraction zone of less than 50.00. Falling short of market predictions and recent readings. Nevertheless, the Manufacturing PMI fell to 48.7 from 50.3 projected and 50.7 before, while the Services PMI fell to 48.2 from 50.7 previously and 49.7 market estimates. As a result, the Composite PMI fell to 48.1 from 50.6 previously.

Concerns over the Fed’s next move kept the Pair on the precarious floor ahead of a slew of US economic data.

Worries over the Fed’s swelling balance sheet fuel hardline demands for the US central bank to raise interest rates. And add to the global banking turbulence, weighing on morale and allowing the US Dollar to chew its wounds around a seven-week low. Meanwhile, the US Dollar Index (DXY) remains defensive at 102.60 after rebounding from a seven-week low the previous day. Although US 10-year and two-year Treasury note yields remain down hovering around 3.39% and 3.80%, respectively. The S&P 500 Futures fail to replicate Wall Street’s bullish gains while conveying the sentiment.

“China and Russia may wish to,” US Treasury Secretary Janet Yellen said on Thursday. establish an alternative to the US dollar,” while also indicating willingness to conduct more deposit measures “if required.” On the other hand, the Financial Times (FT) reported that Pablo Hernández de Cos, the director of the world’s top financial regulator, has urged for stronger restrictions to limit risks flowing from so-called “shadow banks” to other sectors of the banking system.

In terms of data, the US Chicago Fed National Activity Index (CFNAI) fell to -0.19 in February. Compared to 0.0 predicted and 0.23 before. Also, Weekly Initial Jobless Claims fell to 191K for the week ending March 18. Compared to 192K the previous week and 203K market projections. It should be mentioned that new home sales in the United States increased 1.1% in February, from 1.8% the previous month to 1.6%. experts’ forecast. Whilst the Kansas Fed Manufacturing Index for March increased to 3.0 from -9.0 the previous month and 6.0 predicted.

To summaries, the AUDUSD market’s lack of clarity, as well as a cautious mindset ahead of a busy calendar, is justified.