Indonesian Rupiah holds gains as manufacturing PMI expands in July
USD/IDR remains subdued for the fourth successive day, trading around 18,040 during the Asian hours on Monday. The pair experiences notable downside pressure as the Indonesian Rupiah (IDR) strengthens in response to encouraging domestic economic indicators.
China's RatingDog Manufacturing Purchasing Managers' Index (PMI) dropped to 50.9 in July, a decline from 51.7 in June according to the most recent data shared by RatingDog on Monday. This figure fell short of the anticipated 51.5 reading. The China proxy for the Australian Dollar (AUD) is not significantly influenced by the PMI data.
As of the latest update, the AUD/USD pair has risen by 0.18% and is currently trading at 0.7035. The Reserve Bank of Australia (RBA) plays a pivotal role in determining the Australian Dollar's value, primarily by adjusting interest rates to maintain a stable inflation rate of 2-3%. Other factors that affect the Australian Dollar include China's economic health, iron ore prices, trade balance, market sentiment, inflation, and the Trade Balance.
Australia's export-driven economy, with iron ore as its primary export, is closely tied to China's economic performance. Positive Chinese economic growth boosts demand for Australian raw materials and goods, strengthening the AUD, while negative growth impacts weaken it.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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