- AUD/USD climbs over 0.54%, reaching 0.6449, buoyed by gains in Wall Street and a flat US Dollar.
- Australian manufacturing activity nears expansion with April’s Judo Bank Manufacturing PMI rising to 49.9.
- Busy week ahead for US economic data, including PMIs and GDP, expected to influence AUD/USD direction.
The Aussie Dollar began the week on the front foot and registered gains against the US Dollar on Monday, gaining more than 0.54% as risk appetite improved. As the Asian session begins, the AUD/USD trades at 0.6449, up 0.01%.
AUD/USD nears 0.6450 boosted by positive Australian data and lower US Treasury yields
Wall Street finished the session with gains, while US Treasury yields edged lower. The Greenback finished the session flat, though the AUD/USD bounced off yearly lows, shy of the 0.6450 area.
Data from Australia revealed that manufacturing activity in April improved. The Judo Bank Manufacturing PMI came at 49.9, up from 47.3, at a tick of expansion. The Services PMI cooled from 54.4 to 54.2, though it expanded at the fastest rate in two years.
In the meantime, data from the United States featured the Chicago Fed National Activity Index (CFNAI), which rose by 0.15 in March from 0.09 in February. The index’s three-month moving average increased from -0.28 in February to -0.19 in March.
What’s ahead for AUD/USD traders?
This week, the economic docket in the United States (US) will be busy. It will feature S&P Global PMIs, housing data, Durable Goods Orders, and the GDP for the first quarter of 2024. That, along with the release of the Fed’s preferred gauge for inflation, the March Personal Consumption Expenditure (PCE) Price Index, will dictate the direction of the AUD/USD.