AUSTRALIAN DOLLAR MAINTAINS ITS POSITION WITH A POSITIVE SENTIMENT AFTER PMI DATA
- The Australian Dollar appreciates, possibly due to improved risk sentiment amid de-escalated tensions in the Middle East.
- Australia's Judo Bank Composite PMI signaled a swift expansion in the Australian private sector during the second quarter.
- The US Dollar remains subdued despite the elevated US Treasury yields.
The Australian Dollar (AUD) continues its upward trajectory for the second consecutive session on Tuesday, buoyed by improved risk appetite. This positive sentiment follows a relaxation of geopolitical tensions in the Middle East, as indicated by an Iranian official's statement last week, suggesting no immediate plans for retaliation against Israeli airstrikes, as reported by Reuters.
The Australian Dollar receives a slight boost following the release of Australia's Judo Bank Purchasing Managers Index (PMI) data on Tuesday. The Composite PMI surged to a 24-month high of 53.6 in April, an improvement from the previous month's 53.3. This signals a swift expansion in the Australian private sector during the second quarter, with significant growth propelled by the services sector.
The US Dollar Index (DXY), which gauges the US Dollar (USD) against six major currencies, faces pressure despite the elevated US Treasury yields. The likelihood of interest rates remaining unchanged in the June meeting has risen to 84.4%, up from the previous week's 78.7%, according to the CME FedWatch Tool. Additionally, comments from Federal Reserve officials hint at a more hawkish stance regarding the trajectory of interest rates in June.
Investors are expected to closely monitor the US S&P Global Purchasing Managers Index (PMI) on Tuesday. Market sentiment suggests anticipation of improvements in both the manufacturing and services sectors for April. On Wednesday, attention will shift to the Australian Monthly Consumer Price Index and quarterly RBA Trimmed Mean CPI data.
- The Australian Dollar appreciates, possibly due to improved risk sentiment amid de-escalated tensions in the Middle East.
- Australia's Judo Bank Composite PMI signaled a swift expansion in the Australian private sector during the second quarter.
- The US Dollar remains subdued despite the elevated US Treasury yields.
The Australian Dollar (AUD) continues its upward trajectory for the second consecutive session on Tuesday, buoyed by improved risk appetite. This positive sentiment follows a relaxation of geopolitical tensions in the Middle East, as indicated by an Iranian official's statement last week, suggesting no immediate plans for retaliation against Israeli airstrikes, as reported by Reuters.
The Australian Dollar receives a slight boost following the release of Australia's Judo Bank Purchasing Managers Index (PMI) data on Tuesday. The Composite PMI surged to a 24-month high of 53.6 in April, an improvement from the previous month's 53.3. This signals a swift expansion in the Australian private sector during the second quarter, with significant growth propelled by the services sector.
The US Dollar Index (DXY), which gauges the US Dollar (USD) against six major currencies, faces pressure despite the elevated US Treasury yields. The likelihood of interest rates remaining unchanged in the June meeting has risen to 84.4%, up from the previous week's 78.7%, according to the CME FedWatch Tool. Additionally, comments from Federal Reserve officials hint at a more hawkish stance regarding the trajectory of interest rates in June.
Investors are expected to closely monitor the US S&P Global Purchasing Managers Index (PMI) on Tuesday. Market sentiment suggests anticipation of improvements in both the manufacturing and services sectors for April. On Wednesday, attention will shift to the Australian Monthly Consumer Price Index and quarterly RBA Trimmed Mean CPI data.
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