Australian Dollar Steady, US Dollar Struggles Amid Unstable Market Sentiment
The Australian Dollar (AUD) strengthened against the US Dollar (USD) on Thursday (05/22), continuing its gains for the second straight day. The AUD/USD currency pair maintained its position after the release of the preliminary data of the S&P Global Purchasing Managers' Index (PMI).
The Australian Manufacturing Purchasing Managers' Index (PMI) was recorded at 51.7 in May compared to 51.7 previously. Meanwhile, the Services PMI fell to 50.5 in May from the previous reading of 51.0, while the Composite PMI eased to 50.6 in May compared to 51.0 previously.
The Reserve Bank of Australia (RBA) cut the Official Cash Rate (OCR) by 25 basis points on Tuesday. In addition, RBA Governor Michele Bullock supported the central bank's interest rate cut decision. Bullock noted that curbing inflation is important and stated that cutting interest rates is a proactive step that can boost confidence in the economy. He also said the Board was prepared to take additional action if necessary, raising the prospect of future changes.
Source: FXStreet