The Australian dollar fell against other most-traded counterparts today after the Purchasing Managers’ Indices showed that both manufacturing and service sectors continued to expand but with a slower pace.
The Commonwealth Bank Flash Manufacturing PMI fell to 51.4 in July from 52.0 in June. The Commonwealth Bank Flash Services Business Activity Index dropped to 51.9 in July from 52.6 in June. CBA Senior Economist Belinda Allen commented on the results:
Overall the âflashâ PMI does suggest business activity should continue to expand in Q3. A combination of monetary policy stimulus, tax rebates currently hitting household bank accounts and early signs of a recovery in the housing market should see the Australian economy stabilise, if not pick up over the 2H 2019.
The weakening economic activity boosted bets on an interest rate cut from the Reserve Bank of Australia.
Yesterday, the Conference Board released its Leading Economic Index for Australia. The indicator showed a decline of 0.1% in May after the increase of 0.2% in the previous month.
AUD/USD declined from 0.7004 to 0.6985 as of 13:25 GMT today. EUR/AUD gained from 1.5915 to 1.5961. AUD/JPY dropped from 75.79 to 75.45.
If you have any questions, comments, or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.
