The post Australian Dollar advances as China’s Manufacturing PMI remains in expansion territory appeared on BitcoinEthereumNews.com.

The Australian Dollar receives support after the release of China’s Caixin Manufacturing PMI on Thursday. China’s manufacturing output in December continued to expand, marking its 14th consecutive month in growth territory. The US Dollar Index bounced back to multi-year highs due to the Federal Reserve’s hawkish policy shift. The Australian Dollar (AUD) gains ground against the US Dollar (USD) after the Caixin Manufacturing Purchasing Managers’ Index (PMI) from China was released on Thursday. As close trade partners, any fluctuations in China’s economy tend to impact Australian markets. China’s Caixin Manufacturing PMI unexpectedly dropped to 50.5 in December, down from 51.5 in November. The market had anticipated a reading of 51.7 for the month. Wang Zhe, an economist at Caixin Insight Group, commented, “Supply and demand expanded. Manufacturers’ output and demand continued to grow as the market improved. The gauge for output remained in expansionary territory for the 14th consecutive month, while total new orders increased for the third straight month.” The Reserve Bank of Australia’s (RBA) policymakers had grown more confident about inflation, though risks persisted. The board emphasized the need for monetary policy to remain “sufficiently restrictive” until there was greater certainty about inflation. Australian Dollar appreciates despite a stronger US Dollar amid Fed’s hawkish policy shift The US Dollar Index (DXY), which tracks the value of the US Dollar against six major currencies, has rebounded to multi-year highs, trading around 108.50 at the time of writing. This surge is attributed to the US Federal Reserve’s (Fed) hawkish policy shift. The Federal Reserve may adopt a more cautious outlook regarding further rate cuts in 2025, signaling a shift in its monetary policy stance. This change reflects uncertainties surrounding potential policy adjustments in light of the anticipated economic strategies of the incoming Trump administration. Escalating geopolitical tensions in the Middle…

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Filed under: News - @ January 2, 2025 3:23 am