Australian Dollar holds ground as US Dollar struggles on shaky market sentiment
The Australian Dollar (AUD) gains ground against the US Dollar (USD) on Thursday, extending its gains for the second successive day. The AUD/USD pair maintains its position following the release of the preliminary S&P Global Purchasing Managers Index (PMI) data.
Australia's Manufacturing Purchasing Managers Index came in at 51.7 in May versus 51.7 prior. Meanwhile, Services PMI declines to 50.5 in May from the previous reading of 51.0, while the Composite PMI eases to 50.6 in May versus 51.0 prior.
The Reserve Bank of Australia (RBA) reduced its Official Cash Rate (OCR) by 25 basis points on Tuesday. Moreover, RBA Governor Michele Bullock supported the central bank's rate cut decision. Bullock noted that curbing inflation is important and expressed that a rate cut was a proactive, confidence-boosting move that was suitable given the state of the economy. She also mentioned that the Board is prepared to take additional action if necessary, raising the prospect of future changes.
The Australian Dollar strengthens as the US Dollar weakens on Thursday.
Australia’s Manufacturing PMI remains steady at 51.7 in May, meanwhile, Services PMI declines to 50.5.
Fed officials noted that a decline in consumer and corporate confidence is attributed to US trade policy changes.
Source: Fxstreet
