Australian Dollar declines after high-tier US data, Chinese worries
The post Australian Dollar declines after high-tier US data, Chinese worries appeared on BitcoinEthereumNews.com.
AUD/USD declines due to modest US dollar gains after a packed economic calendar. Weak Chinese PMIs weigh on the Australian Dollar. RBA expected to maintain a hawkish stance, supporting AUD/USD, but concerns over China’s economy linger. The AUD/USD pair declined by 0.40% to 0.6560 in Friday’s session, pressured by a modest US dollar recovery and skepticism surrounding China’s economic stimulus initiatives. Weak manufacturing data from China, as indicated by the Purchasing Managers’ Index (PMI) figures, has weighed on the Australian Dollar, which is heavily influenced by China’s economic health. Despite expectations of a hawkish stance from the Reserve Bank of Australia (RBA), concerns over China’s economic prospects continue to dampen the Aussie’s performance. On the local data front, Australia reported the Q3 Producer Price Index, which showed signs of slowing down but remains elevated. Daily digest market movers: Australian Dollar dips amidst mixed US data, worries over Chinese economy Market expectations for an RBA rate cut are low, with only a 15% probability assigned to a December cut. On the data front, Australia’s PPI growth slowed in Q3 to 3.9% QoQ but remains well above the RBA’s target. On the US front, disappointing US Nonfarm Payrolls from October (12,000 versus 113,000 expected) weakened the Dollar, while wage inflation rose to 4%. The US service sector expanded in September, with the Services PMI rising to 54.9 above expectations. The bad news for the US is that the Manufacturing PMI unexpectedly contracted, which flashed alarms among investors. Markets priced in an almost certain 25 bps Fed rate cut next week and an 85% chance of another cut in December. Expectations of inflationary policies under former President Trump provided additional support to the US Dollar. AUD/USD Technical Outlook: Bearish momentum present, sideways period on the horizon The Relative Strength Index (RSI)…
Filed under: News - @ November 2, 2024 3:22 pm