Australian Dollar trims some of its intraday gains ahead of US PMI data
The post Australian Dollar trims some of its intraday gains ahead of US PMI data appeared on BitcoinEthereumNews.com.
Australian Dollar maintains bullish sentiment on dovish Fed outlook. Australia’s Manufacturing and Services PMI increased to 47.8 and 47.6, respectively. PBoC maintained its Medium-term Lending Facility rate (MLF) at 2.5%. China’s Industrial Production and Retail Sales improved to 6.6% and 10.1%, respectively, in November. US Retail Sales rose 0.3% and Initial Jobless Claims reduced to 202K. The Australian Dollar (AUD) continues its winning streak for the third consecutive day on Friday. The AUD/USD pair receives upward support from improving Australia’s Purchasing Managers Index (PMI) data for December, released by Judo Bank and S&P Global. Additionally, China’s improved data contributes support to reinforcing the strength of the Australian Dollar. Australia’s economy displays resilience, bolstered by robust employment results and expanding incomes. The preliminary Judo Bank Composite PMI has shown improvement, rising to 47.4 from the previous reading of 46.2. The Manufacturing PMI for the same period registered 47.8, a slight increase from the prior figure of 47.7. Additionally, the Services PMI grew to 47.6 compared to the previous reading of 46.0. The People’s Bank of China (PBoC) kept its 1-year Medium-term Lending Facility (MLF) rate unchanged at 2.5%, the interest rate on MLF loans is a key factor influencing liquidity conditions in the banking system. Additionally, 650 billion Yuan worth of MLF loans are set to mature, and the central bank injects 1.45 trillion Yuan, a greater amount to bolster bank liquidity. These actions by the PBoC support the financial system and enhance economic conditions in China. Given Australia’s status as a major exporter to China, improvements in China’s economic conditions often translate to increased demand for Australian exports, contributing to the strength of the Aussie Dollar. The National Bureau of Statistics of China revealed that Industrial Production (YoY) improved to 6.6% in November from 4.6% prior, exceeding the market expectation of 5.6%. However, China…
Filed under: News - @ December 15, 2023 6:16 am