AUSTRALIAN DOLLAR LOSES GROUND AMID STRONGER US DOLLAR AFTER MIXED DATA ON THURSDAY
- Australian Dollar extends losses amid an improved US Dollar on Friday.
- The decline in the ASX 200 could have undermined the Australian Dollar.
- S&P Global Manufacturing PMI rose to 52.5 against the expected 51.7 and 52.2 prior.
The Australian Dollar (AUD) depreciates for the second consecutive session on Friday, as the US Dollar (USD) strengthened following mixed S&P preliminary Purchasing Managers Index (PMI) data and robust weekly Jobless Claims from the United States (US).
Australian Dollar receives downward pressure from the decline in the ASX 200 Index. The Australian equity market experienced losses, particularly in energy and consumer stocks, despite the positive performance on Wall Street, where all three major benchmarks set record highs.
The US Dollar Index (DXY) continues to extend its gains despite lower US Treasury yields. However, the US Dollar faced challenges due to the Federal Reserve's (Fed) reaffirmation of expectations for three interest rate cuts in 2024. The prevailing consensus suggests the start of an easing cycle in June, with the timing of the next cut contingent upon incoming data.
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