Australian Dollar gains ground on improved domestic economic data on Thursday.
Australia’s Judo Bank Services and Composite PMIs improved to 54.4 and 53.3, respectively, in March.
US Dollar receives downward pressure due to lower US Treasury yields.
The Australian Dollar (AUD) continues to gain ground on the third successive session after improved Judo Bank Purchasing Managers Index (PMI) data released on Thursday. Additionally, improved Building Permits (YoY) figures released by the Australian Bureau of Statistics added support to the advance of the AUD.
The AUD/USD pair posted solid gains on Wednesday, as US Dollar (USD) suffered losses due to falling US Treasury yields, while US economic data was mixed, with a stronger ADP Employment Change but softer ISM Services PMI data from the United States (US). Additionally, improved Chinese Services PMI might have contributed support to underpinning the Aussie Dollar.
The US Dollar Index (DXY) attempts to snap its two-day losing streak amid dovish remarks from Federal Reserve officials. Fed Chair Jerome Powell reaffirmed the US central bank's preparedness to implement rate cuts, emphasizing a data-dependent approach. Atlanta Fed President Raphael Bostic's remarks, advocating for a rate cut in the final quarter of 2024. Adriana Kugle highlighted that the ongoing disinflationary trend would necessitate rate reductions, with expectations of at least three cuts by the last quarter of 2024.
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