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The Australian Dollar extends its gains following the PBOC’s conducting a medium-term loan operation. Australia’s Judo Bank Composite PMI increased to 50.3 in January, slightly higher than December’s reading of 50.2, signaling modest private sector expansion. President Trump called for the US Federal Reserve to implement an immediate interest rate cut. The Australian Dollar (AUD) continues its upward momentum against the US Dollar (USD) for the third consecutive session on Friday. The AUD/USD pair strengthens as US President Donald Trump expressed optimism, stating that he “would rather not have to use tariffs on China” and is hopeful about reaching a deal. Trump’s remarks came after his conversation with China’s President Xi Jinping on Thursday, hinting at potential progress in US-China trade negotiations. Traders will likely monitor the release of the preliminary US S&P Global Purchasing Managers Index (PMI) and the Michigan Consumer Sentiment Index for January. The People’s Bank of China (PBOC) maintained the interest rate at 2.00% and injected 200 billion Yuan ($27.46 billion) through a one-year medium-term lending facility (MLF) to select financial institutions, according to Reuters. Australia’s Judo Bank’s Composite Purchasing Managers Index (PMI) edged higher to 50.3 in January, up from 50.2 in December. This marked the fourth consecutive month of modest private sector expansion, driven by growth in the services sector while manufacturing output stabilized. The Judo Bank Manufacturing PMI climbed to 49.8 in January from 47.8 in December, the highest reading in 12 months, breaking a streak of 13 consecutive months of contraction. However, the Services PMI dipped to 50.4 from 50.8, hitting a six-month low and indicating a slowdown in the sector’s growth. On Thursday, Chinese authorities introduced several measures to stabilize its stock markets, including allowing pension funds to increase investments in domestic equities. A pilot scheme enabling insurers to purchase equities will…

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Filed under: News - @ January 24, 2025 3:09 am