Australian dollar is falling as escalating Middle East tensions limit risk appetite.

After the release of major economic data on Thursday, the Australian Dollar (AUD) edged lower against the US Dollar (USD). Furthermore, the risk-sensitive AUDUSD pair is under negative pressure as escalating geopolitical tensions in the Middle East reduce risk appetite. The Israeli Broadcasting Authority (IBA) announced that Israel’s security cabinet has resolved to respond strongly to the recent Iranian attack. On Tuesday night, Iran launched over 200 ballistic missiles and drone strikes on Israel.

Australia’s trade balance was 5,644 million month on month, beating the predicted 5,500 million and the 5,636 million readings from July.

Australia’s trade balance in August was 5,644 million, exceeding market estimates of 5,500 million and slightly higher than July’s surplus of 5,636 million. However, both exports and imports fell by 0.2% month on month in August.

However, the Australian Dollar downside risk may be limited given the Reserve Bank of Australia’s (RBA) hawkish outlook. Data release earlier this week revealed stronger-than-expected retail sales growth in August, reducing the chances of the RBA cutting interest rates early. Markets have almost completely eliminate the possibility of a rate cut in November. Furthermore, China, Australia’s major trading partner, has implemented stimulus measures that have bolstered the Australian Dollar. Commodity pricing.

Traders anticipated to pay particular attention to a slew of crucial economic data from the United States (US) slated for release on Thursday, including the September ISM Services Purchasing Managers’ Index (PMI) and the previous week’s weekly Initial Jobless Claims.

Daily Market Movers: The Australian dollar falls due to risk-off sentiment.

Australian Dollar (AUD) edged lower against the US Dollar (USD). According to the CME FedWatch Tool, markets expect the Federal Reserve will decrease interest rates by 25 basis points in November, while the likelihood of a 50-basis-point cut has dropped to 34.6% from 57.4% a week ago.

Australia’s Judo Bank Services Purchasing Managers’ Index (PMI) fell to 50.5 in September from 52.5 in August. This marks the eighth straight month of growth in service activity. although at a slower, marginal rate. Meanwhile, the Composite PMI fell marginally to 49.6 in September, from 49.8 the previous month, according to data released on Thursday.

President Tom Barkin of the Federal Reserve Bank of Richmond addressed the Fed’s recent rate actions.

Australian Dollar (AUD) edge lower against the US Dollar (USD). On Wednesday, President Tom Barkin of the Federal Reserve Bank of Richmond addressed the Fed’s recent rate actions, warning that the fight against inflation may not be done because dangers remain. Barkin stated that the September rate drop of 50 basis points (bps) reasonable since rates had grown “out of sync” with the decline in inflation, while the unemployment rate was around its sustainable level.

According to the ADP Employment Change report, 143,000 new positions created in September, exceeding the projected 120,000. Additionally, annual compensation increased by 4.7% year on year. The overall number of jobs added in August was revised up from 99,000 to 103,000.

The AiG Industry Index improved somewhat in September, climbing 4.9 points to -18.6 from the previous reading of -23.5, although it remains in contraction for the 29th straight month. Meanwhile, the AiG Manufacturing PMI fell 2.8 points to -33.6 from -30.8 the previous month, marking the series’ lowest trend level since its inception.

On Tuesday, the US ISM Manufacturing PMI came in at 47.2 for September, matching the level from August but falling short of the market expectations of 47.5.

The Australian Bureau of Statistics (ABS) revealed on Tuesday that Retail Sales. The major indicator of Australian consumer spending, increased 0.7% month on month in August, above market estimates of a 0.4% gain.

Federal Reserve (Fed) Chairman Jerome Powell stated on Monday that the central bank is not in a rush and will drop its benchmark rate ‘over time.’

The Federal Reserve (Fed) Chairman Jerome Powell stated on Monday. That the central bank not in a rush and will drop its benchmark rate ‘over time.’ Powell went on to say that the recent half-point interest rate drop should not interpret as a sign of equally aggressive future measures. And that future rate changes expected to be more moderate.