Australian Dollar remains subdued following RBA Meeting Minutes, China's Manufacturing PMI
The Australian Dollar (AUD) depreciated against the US Dollar (USD) on Tuesday after registering around 1% gains in the previous session. The AUD/USD pair remains subdued following the release of the Reserve Bank of Australia’s (RBA) Meeting Minutes.
RBA Minutes of its May monetary policy meeting suggested that the board viewed the case for a 25 basis point cut as a stronger one, preferring a policy to be cautious and predictable.
The policymakers highlighted that US trade policy posed a significant and adverse impact on the global outlook, but had not yet affected the Australian economy, however, they did not persuade that a 50 bps was needed.
China's Caixin Manufacturing Purchasing Managers' Index (PMI) unexpectedly fell to 48.3 in May from 50.4 in April, falling short of the market expectations of a 50.6 expansion.
However, the weekend data showed that the National Bureau of Statistics (NBS) Manufacturing PMI rose to 49.5 in May, from April’s 49.0 reading. Meanwhile, the Non-Manufacturing PMI declined to 50.3 from the previous 50.4 figure, falling short of the expected reading of 50.6. The Aussie Dollar could be impacted by Chinese economic data as both countries are close trading partners.
Source: Fxstreet
