Aussie dollar falls below 66 US cents
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Daily Currency Update
The Australian dollar is slightly weaker this morning when valued against the Greenback currently trading at 0.6579 at time of writing. The Aussie dollar extended its losing spell for the eighth trading session on Wednesday. The Aussie asset remains in the bearish trajectory due to multiple headwinds. On the data front, yesterday China’s Q2 Gross Domestic Product (GDP) grew weaker than projected due to vulnerable demand from domestic and in the overseas market. Worries regarding sluggish GDP growth in the world's second-largest economy deepened following the People’s Bank of China (PBoC)'s unexpected rate-cut decision on Monday and a lack of significant spending measures in the Third Plenum. On the local front, preliminary Judo Bank PMI readings indicated that the Composite PMI dipped to 50.2 from the previous release of 50.7. The Manufacturing PMI showed a slight improvement of 47.4, it fell back into contraction while the Service PMI expanded more slowly at 50.8. The Service PMI expanded at a slower pace to 50.8 from the former release of 51.2. There are no scheduled releases today.Key Movers
The Pound Sterling bounced back against its major peers in Wednesday’s New York session after an upbeat preliminary S&P Global/CIPS Purchasing Managers’ Index (PMI) data for July. British business activity picked up this month after a lull in the run-up to a July 4 election, bolstered by the fastest manufacturing growth in two years and the strongest inflow of new orders since April 2023, a major survey showed on Wednesday. The Composite PMI came in higher at 52.7 than estimates of 52.6 and the former release of 52.3 due to an increase in activities in the manufacturing as well as service sectors. The Manufacturing and Services PMI expanded to 51.8 and 52.4, respectively, outperforming their former releases. Although growth so far this year has exceeded most forecasters' expectations, Britain's economy has performed relatively poorly since the COVID-19 pandemic. In the wake of the PMI data, British government bond futures, pushing the yield spread between British and German government bonds to its widest since early July. The future output component jumped from 70.4 to 74.7 in July, its second-highest reading since February 2022, helped in part by the fastest growth in export orders since March 2023.Expected Ranges
- AUD/USD: 0.6450 - 0.6650 ▼
- AUD/EUR: 0.5950 - 0.6150 ▼
- GBP/AUD: 1.9500 - 1.9700 ▼
- AUD/NZD: 1.1000 - 1.1200 ▲
- AUD/CAD: 0.9000 - 0.9200 ▼