The Australian Dollar (AUD) price today remains stable around 0.6810 after recovering on Friday. The AUD/USD pair has seen a decline of 0.06% throughout 2023, continuing a three-year downward trend.
 
However, the pair has experienced an increase over the past two months as the US Dollar (USD) weakened due to a decline in US inflation. The drop in inflation has sparked speculation that the US Federal Reserve (Fed) may cut interest rates in early 2024.
 
The Australian Dollar shows resilience due to increasing risk appetite, strong inflation, and high housing prices. Recent meeting minutes reaffirm the Reserve Bank of Australia’s (RBA) commitment to consider additional data before deciding on future interest rates. Anticipation that the RBA is likely to refrain from cutting rates at the February policy meeting supports the strength of the AUD.
 
The Caixin Manufacturing PMI for China in December showed an increase with a score of 50.8, exceeding market consensus of 50.4 and the previous figure of 50.7. This positive surprise could strengthen the AUD, given China's significant trade relationship with Australia.
 
Although the US Dollar Index (DXY) continues to strengthen, it will face challenges due to declining US labor data, Core PCE Inflation, and recent Annual GDP figures. The latest Chicago PMI release by ISM-Chicago on Friday noted easing business conditions in Illinois, Indiana, and Michigan in December.
 
These indicators confirm that the US economy is experiencing a slowdown in the fourth quarter, suggesting a potential soft landing. This reinforces arguments for interest rate cuts by the Fed in 2024 and puts pressure on the USD exchange rate.
 
The Composite and Services PMI from Judo Bank Australia for December will be released on Thursday. On Wednesday, attention will focus on the ISM Manufacturing PMI figures and the Federal Open Market Committee (FOMC) meeting minutes in the US economic calendar.

Daily Market Movement Summary:
  1. The Australian Dollar has moved sideways amid a strengthening US Dollar.
  2. Judo Bank Manufacturing PMI dropped to 47.6 in December from 47.8 previously.
  3. The NBS Manufacturing PMI for China decreased to 49.0 in December from 49.4, below market expectations of 49.5. Meanwhile, the NBS Non-Manufacturing PMI rose to 50.4 from 50.2, although it did not meet expectations of 50.5.
  4. The Chicago Purchasing Managers' Index fell to 46.9 in December from 55.8 previously.
 
Warning!
 
This analysis of "Today's Australian Dollar Price" is based on fundamental and technical perspectives from reliable sources and does not constitute advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct your own independent research regarding other forex information to serve as a reference in your trading.
 
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