Australian Dollar tumbles amid stronger US PMIs, softer Australian data
AUD/USD tumbles 1.07% on Wednesday and trades around 0.7040 at the time of writing, pressured by a combination of a stronger US Dollar (USD) and disappointing activity data from Australia.
The Australian Dollar (AUD) experienced a significant decline on Wednesday, trading at around 0.7040 as the US Dollar (USD) strengthened. This drop was primarily driven by disappointing economic data and a stronger US Dollar. The Australian Composite Purchasing Managers Index (PMI) fell to 50.8 in September, down from 52.7 in August, indicating contraction in the economy.
The manufacturing sector contracted, and the services sector showed a slowdown. These figures dampened expectations of further interest rate hikes by the Reserve Bank of Australia (RBA), which may lead to a further weakening of the AUD. Meanwhile, the US Composite PMI rose to 58.4, reflecting a surge in private-sector activity, and the Manufacturing PMI climbed to 57, well above expectations.
These robust US economic indicators bolstered the value of the US Dollar, further pressuring the AUD/USD pair.
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