Australian dollar falls with the announcement of mixed domestic economic data.

The Australian Dollar (AUD) loses a three-day winning streak. With the announcement of unchanged Final Retail Sales and disappointing Trade Balance data from Australia on Friday. However, the US Dollar (USD) fell due to weaker labor market data from the United States (US) on Thursday. Which supported the AUDUSD pair.

In March, Australia’s trade balance slipped to 7,280 million MoM, down from 10,058 million in February.

Australia’s trade surplus (month-over-month) dropped to 7,280 million in March. Falling short of the predicted 10,400 million and February’s reading of 10,058 million, according to data. Released by the Australian Bureau of Statistics. Australia’s exports fell by 2.2% month on month, compared with the preceding 1.6% gain. Meanwhile, the country’s imports increased by 4.8%, compared to 1.3% previously.

The US dollar may lose ground when US Treasury yields fall.

The US Dollar Index (DXY) consolidates with a negative attitude. Reflecting the reduction in US Treasury yields. Which may be affected by indifferent statements from numerous Federal Reserve members. However, the US Dollar may have attracted investors. Despite market caution due to growing geopolitical tensions following Israel’s attack on Iran’s embassy in Syria.

Daily Market Movers: Australian Dollar falls on mixed economic data.

Australia’s Final Retail Sales remained constant at 0.3% in February, meeting predictions.
Australian Judo Bank Services PMI rose to 54.4 in March from 53.5 in February. Judo Bank The 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%. In comparison, there is a 5.2% year-on-year growth, up from 4.8% previously.
RBA According to the March meeting minutes, the board did not consider hiking interest rates. They all 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.
Thomas Barkin, President of the Federal Reserve Bank of Richmond, stated that Disinflation is projected to continue, though the speed is uncertain. He went on to say, “I am open to rate cuts once it is clear that progress on inflation will be sustained and apply more broadly in the economy.”
Loretta Mester, President of the Federal Reserve Bank of Cleveland, said on Thursday that she might be willing to slow the rate of securities runoff from the Fed’s balance sheet in the near future. She also expected to be able to cut the fed funds rate later this year.

Fed Chair Jerome Powell reiterated the US central bank’s willingness to implement rate decreases.

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’s comments arguing for a rate drop in the fourth quarter of 2024.
Adriana Kugler is a member of the Federal Reserve Board of Governors stated that the continuous disinflationary trend will entail rate decreases, with at least three drops expected by the fourth quarter of 2024.
US Initial Jobless Claims for the week ended March 29 increased by 9,000 to 221,000 from the previous week’s figure of 212,000, falling short of market expectations of 214,000.
The US Challenger Job Cuts rose to 90.309K in March, up from 84.638K the previous month.
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 fell to 51.4 in March from 52.6 in February, below the forecast of 52.7. US ISM Manufacturing PMI rose to 50.3 in March from 47.8 in February , exceeding predictions of 48.4.