Australian Dollar depreciates due to the lower ASX 200 Index on Wednesday.
Australian Industry Group Industry Index improved to a reading of -5.3 from -14.9 prior.
China's Services PMI improved to 52.7 in March, compared with the previous reading of 52.5.
US Dollar receives downward pressure following dovish remarks from Fed officials.
The Australian Dollar (AUD) retraces its recent gains registered on Tuesday, edging lower on Wednesday. However, the US Dollar (USD) experienced depreciation due to downward pressure on US Treasury yields, consequently providing support to the AUD/USD pair. Additionally, the decline in the ASX 200 Index contributes to pressure on the AUD.
The Australian Industry Group (AiG) Industry Index showed improvement in February, rising to a reading of -5.3 from the previous -14.9. Similarly, the Manufacturing PMI came in at -7, compared to the prior reading of -12.6. According to Westpac's summary of the Reserve Bank of Australia (RBA) March meeting minutes, the current cash rate level is considered suitable for the present circumstances, although conditions may change in the future.
The US Dollar Index (DXY) encounters obstacles following dovish remarks from Federal Reserve (Fed) officials. Cleveland Fed President Loretta Mester indicated on Tuesday her anticipation of rate cuts later this year. Concurrently, San Francisco Fed President Mary Daly expressed her view that three rate cuts in 2024 appear "reasonable," contingent upon further convincing evidence to solidify such a decision.
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