Australian Dollar Strengthens, Signaling Tighter Policy?
The Australian dollar strengthened slightly against the US dollar on Friday, recording gains for the second consecutive day. This strengthening occurred following the release of Australian PMI data showing continued improvement in business activity. The Manufacturing PMI rose to 52.4 in January, while the Services PMI jumped to 56.0 and the Composite PMI rose to 55.5.
These strong PMI data reinforce market expectations for tighter monetary policy from the Reserve Bank of Australia (RBA). Solid economic activity indicates that demand pressures remain high, thus leaving room for the central bank to maintain or raise interest rates.
Positive sentiment was also supported by Australian employment data. The number of jobs increased by 65.2 thousand in December, reversing the previous month's decline. At the same time, the unemployment rate fell to 4.1%, better than market expectations, further supporting the Australian dollar's strength. (az)
Source: Newsmaker.id
