The AUD/USD pair continues its upward trend for the fourth consecutive session, trading around 0.6510 during Wednesday’s Asian session. The Australian Dollar (AUD) is supported by the release of domestic economic data and a positive shift in global trade sentiment.
In April, the AiG Industry Index saw a modest improvement, rising by 5.1 points to -15 on a seasonally adjusted basis. Despite persistent challenges in the industrial sector, such as global trade uncertainty, currency volatility, and the approaching federal election, the index signals some stabilization. Meanwhile, the AiG Manufacturing Purchasing Managers’ Index (PMI) climbed by 3.0 points to -26.7, recovering from -29.7 in March, offering further signs of recovery.
The AUD’s sentiment has also been boosted by easing US-China trade tensions. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are set to meet with Chinese Vice Premier He Lifeng in Geneva this weekend, marking the first high-level talks since the US tariffs led to an escalating trade dispute. China’s Ministry of Commerce confirmed that Beijing has agreed to engage in the upcoming negotiations, after evaluating US proposals and considering global expectations.
As global trade sentiment improves, investor focus shifts to the Federal Reserve’s rate decision later today. While the Fed is widely expected to keep rates unchanged, market participants will closely watch comments from Fed Chair Jerome Powell for any signals of a shift toward rate cuts, which could influence the USD and, in turn, the AUD/USD pair.
Related Topics:
