Ella 
The Australian dollar continued to rise, influenced by Australia’s S&P/ASX 200 index rising after US stocks surged overnight. Nvidia’s upbeat quarterly earnings report pushed the S&P 500 and Nasdaq Composite to record closing highs.
Domestic data showed that private sector activity returned to growth in February for the first time in five months, driven by a strong expansion in the services sector, providing upside support for the Australian dollar. In addition, after the Reserve Bank of Australia (RBA) released the minutes of its recent meeting, the market believed that the central bank would probably not cut interest rates immediately, and the Australian dollar benefited from this.
The U.S. dollar index (DXY) found upside support on strong U.S. employment data, with the Bureau of Labor Statistics (BLS) reporting that jobless claims fell below consensus expectations last week. Additionally, mixed preliminary S&P Global Purchasing Managers’ Index (PMI) data pointed to economic expansion, strengthening the Federal Reserve’s case for keeping interest rates higher for longer to combat inflationary pressures. Additionally, hawkish comments from U.S. Federal Reserve officials emphasizing the need to avoid interest rate cuts in the near future may further support the U.S. dollar (USD).
