The AUDUSD currency pair was trading up over 19 pips as the Australian dollar rose against the US dollar. The move higher occurred despite the Australian dollar facing a challenging start to the day as disappointing Purchasing Managers’ Index (PMI) data came to light, pushing both Judo Bank’s manufacturing and services metrics to their lowest levels in a year.
AUDUSD Edges Higher on Chinese Optimism Despite Weak Aussie PMIs
These declines pushed these sectors further into contractionary territory. Furthermore, the impact of the Reserve Bank of Australia’s (RBA) meeting minutes still lingers, as the board reiterated concerns about inflation and the potential for future interest rate hikes.
Despite these setbacks, there was a glimmer of positivity for the Australian dollar from China. Beijing’s announcement of financial aid for distressed property developers boosted the AUD.
A weaker US dollar and the mentioned Chinese optimism have also contributed to higher prices for critical Australian commodity exports, thereby supporting the Aussie dollar. The changing rate expectations have also leaned towards a more hawkish stance, with an increased likelihood of a rate hike in 2024.
From the perspective of the US dollar, recent economic data has raised concerns. Yesterday’s reports showed a decline in durable goods orders and Michigan consumer sentiment, although there was a slight improvement in initial jobless claims.
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The celebration of Thanksgiving Day in the United States means there is no impactful news from the US docket, leaving the US dollar trading lower for the day as tracked by the US Dollar Index.
As it is Thanksgiving Day in the United States, financial markets are expected to experience reduced volatility and lower trading volumes. Consequently, the AUD/USD pair will likely remain relatively stable during this period.
