Australian Dollar Stays Strong After PMI and Trade Data
The Australian dollar (AUD) stayed firm against the U.S. dollar (USD) on Friday after new economic reports.
Australia’s PMI data showed slower growth but still above the 50 mark, which means the economy is expanding. The Composite PMI dropped to 52.4 in September from 55.5 in August. The Services PMI also slipped to 52.4 from 55.8.
Trade numbers were weaker. The country’s trade surplus fell sharply to AUD 1.8 billion in August, compared to 7.3 billion in July. Exports went down by 7.8%, while imports increased by 3.2%. One major reason was lower gold exports after a few strong months.
The Reserve Bank of Australia (RBA) kept interest rates unchanged at 3.6% in September. The RBA warned about risks from high asset prices, global debt markets, and slow growth in China’s property sector. Inflation is still a little higher than expected, but not out of control.
In the forex market, AUD/USD is trading close to 0.6590. If it breaks above 0.6600, the price could move toward 0.6700. On the other hand, if it falls, support is near 0.6550.
Impact :
The Australian dollar might stay strong if local numbers remain steady. But if U.S. data improves, AUD/USD could face some pressure.