The Australian dollar remains firm after the publication of the PMI S&P data

  • The Australian dollar remains strong while the US dollar weakens Thursday.
  • Australia’s manufacturing PMI remains stable in 51.7 in May, while the services PMI descends to 50.5.
  • Fed officials pointed out that a decrease in consumers and companies confidence is attributed to the change in US commercial policy.

The Australian dollar (AUD) gains ground against the US dollar (USD) on Thursday, extending its profits for the second consecutive day. The Aud/USD torque maintains its position after the publication of the preliminary data of the Global S&P S&P (PMI) Index.

The Australian Manufacturing Purchase Managers Index (PMI) stood at 51.7 in May compared to 51.7 previous. Meanwhile, the PMI of services drops to 50.5 in May from the previous reading of 51.0, while the compound PMI is reduced to 50.6 in May compared to 51.0 previous.

The Australian Reserve Bank (RBA) reduced its official cash (OCR) rate at 25 basic points on Tuesday. In addition, the Governor of the RBA, Michele Bullock, supported the decision -cut decision of the Central Bank. Bullock said that controlling inflation is important and said that a rate cut was a proactive movement that generates trust and that it was adequate given the state of the economy. He also mentioned that the Board is prepared to take additional measures if necessary, which increases the possibility of future changes.

The Australian dollar maintains its position while the US dollar continues to weaken

  • The American dollar index (DXY), which tracks the US dollar (USD) in front of a basket of six main currencies, is losing ground for the fourth consecutive session and loss around 99.50 at the time of writing.
  • The president of the Fed of Cleveland, Beth Hammack, and the president of the Fed of San Francisco, Mary C. Daly, expressed increasing concerns about the US economy during a panel event organized by the Bank of the Federal Reserve of Atlanta. Although the important economic indicators remain solids, both officials pointed out a decrease in the confidence of consumers and companies and partially attributed the change of opinion to US commercial policies.
  • On Tuesday, the president of the Fed of Atlanta, Raphael Bostic, expanded the comments he made the day before. Bostic warned that inconsistent and changing tariff policies introduced during the Trump administration run the risk of interrupting US commercial logistics, which depends largely on large -scale imports to meet domestic demand.
  • The US dollar faces difficulties after Moody’s reduced the US credit rating of AAA to AA1. This movement is aligned with similar sales of Fitch Ratings in 2023 and Standard & Poor’s in 2011. Moody’s now projects that the US federal debt will reach around 134% of GDP by 2035, compared to 98% in 2023, with the budget deficit that is expected to be extended to almost 9% of GDP. This deterioration is attributed to the increase in debt service costs, the expansion of rights programs and the fall in tax revenues.
  • The economic data published last week pointed to a slowdown in inflation, since both the Consumer Price Index (CPI) and the Production Price Index (IPP) indicated a slowdown in price pressures. This has raised the expectations that the Federal Reserve can implement additional rate cuts in 2025, contributing to greater weakness in the US dollar. In addition, the disappointing US retail sales figures have deepened concerns about a prolonged period of slow economic growth.
  • On Wednesday, the China Ministry of Commerce declared that US measures on China’s advanced chips are “typical of unilateral harassment and protectionism.” Chinese authorities are investigating more thoroughly if the United States is serious to correct their wrong practices.
  • The PBOC announced a reduction in its preferential loan rates (LPR) on Tuesday. The LPR at one year was reduced from 3.10% to 3.00%, while the five -year LPR was reduced from 3.60% to 3.50%.
  • The Australian, risk -sensitive dollar, gained support for the renewed optimism around a 90 -day commercial truce between the US and China and the hopes of more commercial agreements with other countries. Meanwhile, US Treasury Secretary Scott Besent told CNN on Sunday that President Donald Trump intends to implement tariffs at previously threatened levels to commercial partners who do not participate in negotiations “in good faith.”
  • The audience was also affected by political instability in Australia. After the withdrawal of the National Party of his collaboration with the Liberal Party, the opposition coalition dissolved. The Labor Party in Power, on the other hand, took advantage of instability and regained power with a more robust and expansive agenda.

The Australian dollar remains within a confined range despite a bullish bias

The aud/USD torque is quoted around 0.6440 on Thursday. The daily technical indicators reflect a bullish tone since the torque maintains its position above the nine -day exponential (EMA) mobile average, while the 14 -day relative force index (RSI) is maintained above the neutral level of 50, both supporting a persistent bullish impulse.

The immediate resistance seems to be at a maximum of six months of 0.6515, registered on December 2, 2024. A decisive breakdown above this barrier could pave the way for a maximum of the maximum of seven months at 0.6687, which was reached in November 2024.

In the lower part, the nine -day EMA of 0.6427 acts as an immediate support, followed by the EMA of 50 days about 0.6367. An additional depreciation would undermine the upward perspective in the short and medium term, possibly opening the way to the minimum of March 2020 of 0.5914.

AUD/USD: Daily graphic

Australian dollar Price today

The lower table shows the percentage of change of the Australian dollar (AUD) compared to the main currencies today. Australian dollar was the strongest currency against the New Zealand dollar.

USD EUR GBP JPY CAD Aud NZD CHF
USD -0.00% -0.02% -0.22% 0.00% 0.09% 0.23% -0.05%
EUR 0.00% -0.01% -0.21% 0.00% 0.10% 0.24% -0.05%
GBP 0.02% 0.01% -0.23% 0.02% 0.13% 0.24% -0.03%
JPY 0.22% 0.21% 0.23% 0.23% 0.33% 0.43% 0.15%
CAD -0.00% -0.00% -0.02% -0.23% 0.11% 0.23% -0.05%
Aud -0.09% -0.10% -0.13% -0.33% -0.11% 0.13% -0.16%
NZD -0.23% -0.24% -0.24% -0.43% -0.23% -0.13% -0.29%
CHF 0.05% 0.05% 0.03% -0.15% 0.05% 0.16% 0.29%

The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Australian dollar of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the Aud (base)/USD (quotation).

Economic indicator

PMI Global S&P manufacturing

The Manufacturing Purchase Managers Index (PMI), published monthly by S&P globalit is an advanced indicator that measures business activity in the manufacturing sector of Australia. The data is derived from surveys to senior executives of private sector companies. The responses of the survey reflect the change, if there is, in the current month compared to the previous month and can anticipate changing trends in official data series such as the Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with 50.0 levels that indicate that there are no changes compared to the previous month. A reading above 50 indicates that the manufacturing economy is expanding in general, which is an upward sign for the Australian dollar (Aud). Meanwhile, a reading below 50 points out that the activity among goods producers is generally decreasing, which is considered bassist for the AUD.


Read more.

Last publication:
MIÉ MAY 21, 2025 23:00 (PREL)

Frequency:
Monthly

Current:

Dear:

Previous:
51.7

Fountain:

S&P global

he

Source: Fx Street

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