AUD/USD Faces Pressure Around 0.6400 Ahead Of Flash US PMI
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- AUD/USD faces offers near 0.6400 ahead of the preliminary US S&P Global PMI data for February.
- Investors see Trump’s tariff agenda as less fearful than anticipations.
- RBA’s Bullock support for maintaining a cautious interest rate cut stance.
The AUD/USD pair faces selling pressure around 0.6400 in North American trading hours on Friday. The Aussie pair weakens as the US Dollar (USD) trades firmly ahead of the release of the flash United States (US) S&P Global Purchasing Managers’ Index (PMI) at 14:45 GMT.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rises to 106.75 after recovering from the Year-to-day (YTD) low of 106.30, which it posted on Thursday.
Flash PMI report is expected to show that the overall business activity expanded at a faster pace due to strong performance in manufacturing as well as the services sector. The Manufacturing and the Services PMI are estimated to have expanded at a faster pace to 51.5 and 53.0, respectively.
Upbeat private sector PMI data would indicate a strong economic outlook. Such a scenario would force Federal Reserve (Fed) officials to continue maintaining a restrictive monetary policy stance.
However, the outlook of the US Dollar remains uncertain as investors expect US President Donald Trump’s tariff agenda would be less fearful. Till now, the level of tariffs imposed by Trump is significantly lower than what he had vowed in the election campaign. Though Trump has proposed tariffs for a slew of items, investors expect his allies would manage to bargain with him and the impact on the global economy would be much lower than anticipated.
Meanwhile, the Australian Dollar (AUD) weakens against its major peers, except the Japanese Yen (JPY), even though Reserve Bank of Australia (RBA) Governor Michele Bullock reiterated his stance of maintaining caution on further monetary expansion. Bullock warned that the disinflation trend could stall if the RBA cuts interest rates too quickly.
Australian Dollar PRICE Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.26% | 0.21% | 0.48% | 0.07% | 0.30% | 0.16% | 0.25% | |
| EUR | -0.26% | -0.06% | 0.22% | -0.20% | 0.03% | -0.11% | -0.02% | |
| GBP | -0.21% | 0.06% | 0.29% | -0.14% | 0.09% | -0.05% | 0.04% | |
| JPY | -0.48% | -0.22% | -0.29% | -0.38% | -0.17% | -0.33% | -0.23% | |
| CAD | -0.07% | 0.20% | 0.14% | 0.38% | 0.22% | 0.08% | 0.17% | |
| AUD | -0.30% | -0.03% | -0.09% | 0.17% | -0.22% | -0.14% | -0.06% | |
| NZD | -0.16% | 0.11% | 0.05% | 0.33% | -0.08% | 0.14% | 0.09% | |
| CHF | -0.25% | 0.02% | -0.04% | 0.23% | -0.17% | 0.06% | -0.09% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
On the economic data front, Australia’s Judo Bank Composite PMI expanded at a slightly faster pace to 51.2 from 51.1 in January. The Services PMI advanced to 51.4 from 51.2, while the. Manufacturing PMI rose to 50.6 from the former reading of 50.2.
More By This Author:
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EUR/JPY Surrenders Half Of Intraday Gains After Steady Eurozone Flash PMI
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