Australian dollar gained ground as domestic economic statistics showed improvement.
The Australian Dollar (AUD) is up for the third day in a row following better Judo Bank Purchasing Managers Index (PMI) data issued on Thursday. Furthermore, improved Building Permits (YoY) numbers issued by the Australian Bureau of Statistics contributed to the AUD’s rise. The AUDUSD pair saw good gains on Wednesday. As the US Dollar (USD) experienced losses due to decreasing US Treasury yields. US economic data was mixed, with a firmer ADP Employment Change. Although milder ISM Services PMI statistics from the United States. Furthermore, stronger Chinese Services PMI may have helped to underpin the Australian dollar.
The US dollar is under pressure due to lower US Treasury yields.
The US Dollar Index (DXY) seeks to end a two-day losing skid amid dovish comments from Federal Reserve members. Fed Chair Jerome Powell reiterated the US central bank’s willingness to implement rate decreases. Emphasizing a data-driven approach. Atlanta Fed President Raphael Bostic made statements calling for a rate drop in the fourth quarter of 2024. Adriana Kugle stated that the sustained disinflationary trend will need rate decreases. With at least three expected by the fourth quarter of 2024.
Daily Market Movers: The Australian dollar gained value because to stronger Judo Bank PMI numbers. improved to 54.4 in March, up from 53.5 in February.
The Australian Dollar (AUD) is up for the third day in a row. Following better Judo Bank Purchasing Managers Index (PMI) data issued on Thursday.
The Judo Bank Composite PMI increased from 52.4 to 53.3.
Australia’s Building Permits (MoM) declined by 1.9% in February, compared to an expected growth of 3.3% and a previous decline of 2.5%. While there is a 5.2% YoY rise, the previous increase was 4.8%.
The Australian Industry Group (AiG) Industry Index improved in February, increasing to -5.3 from -14.9.
The AiG Manufacturing PMI was -7, down from the previous reading of -12.6. AiG Construction PMI fell to -12.9 in February, down from -18.4 the previous month.
RBA According to the March meeting minutes, the board did not consider hiking interest rates.
According to the RBA March meeting minutes, the board did not consider hiking interest rates. They were unanimous. agreed that it was difficult to foresee future changes in the cash rate. While the economic picture remained uncertain, the risks appeared to be somewhat balanced. The board acknowledged that it would take “some time” before they could be confident in inflation returning to the target level.
According to Westpac’s summary of the Reserve Bank of Australia’s (RBA) March meeting minutes, the current cash rate level is deemed appropriate for the current situation, albeit conditions may change in the future.
China’s Services PMI rose to 52.7 in March, up from 52.5 the month before.
Following November, US President Joe Biden spoke with Chinese President Xi Jinping over the phone. During the call, the two leaders held an open and positive dialogue. encompassing diverse bilateral, regional, and global issues, addressing both areas of collaboration and grounds of divergence.
Treasury Secretary Janet Yellen is scheduled to visit China this week.
Treasury Secretary Janet Yellen is scheduled to visit China this week, where she will meet with China’s Finance Minister and interact with economists, students, and business leaders.
Loretta Mester, president of the Cleveland Fed, said on Tuesday that she expects rate reduction later this year. Concurrently, San Francisco Fed President Mary Daly stated that three rate cuts in 2024 appear “reasonable,” pending additional strong evidence to support such a decision.
US ADP Employment Change increased by 184K in March, compared to 155K in February, exceeding the market consensus of 148K.
The US ISM Services PMI dropped to 51.4 in March from 52.6 in February, lower than expected (52.7).
The US ISM Manufacturing PMI showed a surprising gain in March, rising to 50.3 from 47.8 in February and exceeding estimates of 48.4. This reading was the highest recorded since September 2022.
