Australian Dollar Finds Support As Private Sector Activity Picks Up In April
The Australian dollar (AUD) recovered on Wednesday (4/23), retracing losses from the previous session. The AUD/USD pair steadied after the release of preliminary data from Australia’s Judo Bank Purchasing Managers’ Index (PMI), which showed that private sector activity expanded for the seventh straight month in April, driven by continued growth in manufacturing and services output.
The Judo Bank Manufacturing PMI fell to a two-month low of 51.7 in April, compared with 52.1 in March. While manufacturing output remained in expansionary territory, the increase in new orders was modest. Meanwhile, the Services PMI fell slightly to 51.4 from 51.6 in the previous month, and the Composite PMI also fell to 51.4 from 51.6.
The AUD/USD pair came under pressure as the US Dollar (USD) strengthened, supported by comments from US Treasury Secretary Scott Bessent, who described the ongoing tariff standoff as “unsustainable,” indicating a potential move towards de-escalation. Market sentiment was further boosted by US President Donald Trump, who assured investors that he has no intention of removing Federal Reserve (Fed) Chairman Jerome Powell, helping to ease concerns about the central bank’s independence and policy direction.
Source: FXStreet
