Ella 
The AUD/USD fell on Tuesday, down 0.8% on the day, kicking off the first official trading day in 2024. The U.S. dollar was generally bullish, but as China’s Caixin Manufacturing Purchasing Managers Index (PMI) in December was better than expected, the Australian dollar /USD encounters resistance.
Exaggerated bets on a rate cut by the Federal Reserve are beginning to ease as investors lower their forecasts for a rate cut in 2024 to 150 basis points, while a shaky start in U.S. economic data is also weighing on investor sentiment as markets prepare for Friday’s rate cut. Prepare for the release of the first non-farm payrolls (NFP) data of the year.
China’s December manufacturing Purchasing Managers’ Index (PMI) came in slightly higher than expected during the Asian session, recording 50.8, while the forecast fell to 50.4 from 50.7, boosting risk appetite and helping the Australian dollar against major currencies, followed by the U.S. benchmark The Global Manufacturing Purchasing Managers’ Index fell short of expectations, suppressing the market’s risk bias, and the U.S. dollar rose across the board.
