Australian dollar fell after the Trade Balance data released on Thursday.
Australian Dollar (AUD) fell versus the US Dollar (USD) Despite the release of favorable Trade Balance statistics on Thursday.
Australia’s Trade Balance showed a MoM surplus of $6,009 million, compared to the predicted $5,150 million.
Australia’s trade surplus increased to 6,009 million MoM in July, above the predicted 5,150 million and 5,589 million in the previous reading.
The Reserve Bank of Australia (RBA) Governor Michele Bullock spoke at “The Anika Foundation” in Sydney on “The Costs of High Inflation,” noting that it is too early to consider rates cuts. Currently, the board does not anticipate being able to lower rates in the foreseeable future.
The Australian Dollar declined as recent data showed that Australia’s Gross Domestic Product (GDP) increased in the second quarter but fell short of market expectations. A private study also revealed that the country’s industrial activity continued contractionary in August, bringing the sector’s decline to two years.
US dollar has been under pressure after recent Gloomy Ecnomic report.
The US dollar fell as July’s JOLTS Job Openings fell short of estimates, indicating a further downturn in the labor market. Furthermore, the ISM Manufacturing PMI indicated that industrial activity fell for the sixth consecutive month.
Traders now waiting for the US ISM Services PMI and Initial Jobless Claims. Which are due to be announce on Thursday. The focus will shift to Friday’s US Nonfarm Payrolls (NFP) will provide more information on the probable size of a rate cut by the Fed this month.
Daily Market Movers: Australian Dollar Declines Ahead of US Key Data.
According to Reuters, Atlanta Federal Reserve President Raphael Bostic stated on Wednesday that the Fed is in a fortunate position, but cautioned against maintaining a restrictive policy stance for too long. FXStreet’s FedTracker, which uses a bespoke AI algorithm to judge the tone of Fed officials’ talks on a dovish-to-hawkish scale of 0 to 10, gave Bostic’s words a neutral rating of 4.6.
US JOLTS Job Openings decreased to 7.673 million in July, down from 7.910 million in June, marking the lowest level since January 2021 and falling short Market predictions are 8.10 million.
Bank of America (BoA) has reduced its China economic growth forecast, decreasing it to 4.8% in 2024 from 5.0% previously. The prediction for 2025 has been lowered to 4.5% growth, while the outlook for 2026 remains at 4.5%.
China’s Services Purchasing Managers’ Index (PMI) declined from 52.1 in July to 51.6 in August, which is significant given China’s tight trading ties with Australia.
Australia’s Gross Domestic Product (GDP) increased by 0.2% QoQ in the second quarter, up from 0.1% in the previous quarter but falling short of expectations of 0.3%.
Judo Bank Composite PMI rose to 51.7 in August from 51.4 in July, marking the quickest rise in three months.
The Judo Bank Composite PMI rose to 51.7 in August from 51.4 in July, marking the quickest rise in three months. The growth was The Services PMI rose to 52.5 in August from 52.2 in July, representing the seventh consecutive month of expansion in the services sector.
The US ISM Manufacturing PMI increased to 47.2 in August from 46.8 in July, but fell short of market forecasts of 47.5. This is the 21st drop in US factory activity in the last 22 months.
