Australian Dollar struggles to gain traction despite solid Chinese PMI Data
AUD/USD extends its losses for the third successive day, trading around 0.6970 during Asian hours on Wednesday.
The Australian dollar has been struggling to gain momentum despite strong Chinese Purchasing Managers Index (PMI) figures for September. As of Wednesday, AUD/USD was trading around 0.6970, continuing its downward trend. The Australian dollar has remained under pressure due to a series of key economic data releases from both Australia and China.
Australia's Consumer Price Index (CPI) accelerated to 4.0% year-over-year in August, as expected, but the monthly inflation rate eased to 0.4%. However, the Trimmed Mean CPI came in slightly weaker than anticipated, holding steady at 3.6% year-over-year, but the monthly trimmed reading cooled to 0.2%. In China, both manufacturing and non-manufacturing surveys indicated expanding business activity in September, with official data showing the Manufacturing PMI at 50.1, matching market forecasts.
The Non-Manufacturing PMI also rose to 50.2, surpassing market expectations. Despite these positive signs from China, the Australian dollar has failed to capitalize on the momentum due to disappointment over the Australian CPI, which came in below expectations. This has dampened hopes for further interest rate hikes by the Reserve Bank of Australia.
Meanwhile, Chinese economic indicators, including the RatingDog Manufacturing PMI and the Services PMI, both showed improvement, indicating steady growth across the broader economy. However, strategists at BNY Markets believe the rates complex remains under upward pressure as investors continue to price in further monetary tightening.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
