The post Australian Dollar extends losing streak due to falling prices of energy, metals appeared on BitcoinEthereumNews.com.

The Australian Dollar depreciates due to the stark decline in prices of prices of oil, iron ore, and copper. The AUD faced challenges as recent PMI data showed that Australia’s business activity cooled to a six-month low in July. The US Dollar may struggle due to a decline in Treasury yields. The Australian Dollar (AUD) continues its losing streak for the ninth consecutive day on Thursday, primarily due to declining prices of oil, iron ore, and copper. As Australia is a net exporter of energy and metals, its currency is particularly sensitive to fluctuations in commodity prices. The AUD also faced pressure from recent Purchasing Managers Index (PMI) data, which showed that Australia’s business activity cooled to a six-month low in July. Manufacturing activity remained in contraction, and growth in the services sector slowed. The Aussie Dollar may limit its downside as the Reserve Bank of Australia (RBA) is expected to delay easing its policy tightening compared to other major central banks due to persistent inflationary pressures and a tight labor market. Futures markets currently imply a 20% probability that the RBA could hike interest rates at its August meeting. The AUD/USD pair also faced pressure from a strengthening US Dollar (USD) as investors prepared for upcoming US GDP and PCE inflation data. Recent US PMI data indicated that private-sector activity expanded at a faster pace in July, highlighting the resilience of US growth despite higher interest rates. This data provides the Federal Reserve (Fed) with some flexibility to maintain its restrictive policy stance if inflation does not show signs of slowing. Daily Digest Market Movers: Australian Dollar declines due to cooling business activity The S&P Global US Services PMI increased to a reading of 56.0 in July, the highest in 28 months, up from a 55.3 reading in June…

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Filed under: News - @ July 25, 2024 2:18 am