The Aussie exchange rate continues to decline for the third session today, influenced by the weakening stock market and a drop in mining shares. Despite weak Q4 2023 GDP data, the Australian Dollar remains stable.
 
The RBA monitors the economy for signs of a slowdown with the target of returning inflation to the desired level. The US Dollar Index (DXY) attempts to halt its decline, although the US Dollar (USD) faces downward pressure after weak US ISM Services PMI data. The ADP Employment Change for February is observed on Wednesday.
 
The Aussie depreciated in the ASX 200 market, with several economic indicators depicting the situation as follows:
 
  • The AiG Industry Index reported a significant drop to -14.9 in January.
  • The AiG Construction PMI continued to contract, falling to -18.4.
  • The AiG Manufacturing PMI recorded -12.6, indicating a smaller contraction than before.
 
However, there are some positive points:
 
  • Judo Bank's Services PMI increased to 53.1, signaling expansion.
  • Judo Bank's Composite PMI rose to 52.1, reaching the highest level in nine months.
  • Australia’s Current Account Balance rose to 11.8 billion in Q4 2023.
However, there are concerns:
 
  • The ANZ-Roy Morgan Consumer Confidence Index fell to 81.0, hitting the lowest level in 2024.
  • The Melbourne Institute's Inflation for February dropped to 4.0%.
 
Economic outlook:
 
Commerzbank predicts that the RBA will delay a rate cut but may adjust policy if an economic slowdown occurs.
 
Read Also:
 
Service PMI analysis:
 
Matthew De Pasquale from Judo Bank states that the Services PMI shows a rebound in early 2024 but also raises doubts regarding inflation and economic growth.
 
News from the President of the Atlanta Fed:
 
Raphael Bostic raises uncertainty about achieving a soft landing, predicting two rate cuts in 2024.
 
Market projections:
 
The CME FedWatch Tool notes a 4.0% chance of a rate cut in March.
 
US economic data:
 
  • US ISM Services PMI fell to 52.6 in February, contrary to expectations.
  • US Factory Orders (Monthly) declined 3.6% in January, exceeding forecasted drops.
  • S&P Global Composite PMI rose to 52.5.
  • US ISM Manufacturing PMI fell to 47.8, below expectations.
  • The University of Michigan Consumer Sentiment Index dropped to 76.9 in February.
  • The US PCE Price Index grew 2.4% YoY in January, slightly below the previous rate.
 
Warning!
 
This is the forex news today regarding "Latest Update on the Aussie Rate for Gen Z New Traders! Profit or Loss?" This analysis is based on fundamental and technical perspectives from trusted sources and is not intended as advice or a call to action. Always remember that this content aims to enrich readers' information. Always conduct your own research regarding other forex information as a reference in your trading.
 
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