The Australian dollar (AUD) fell for a second straight session on Friday as the greenback strengthened following mixed preliminary S&P Purchasing Managers’ Index (PMI) data and strong U.S. jobless claims last week.
The Australian dollar came under downward pressure as the ASX 200 fell. Despite a good performance on Wall Street, with all three major stock indexes hitting record highs, Australian shares fell, particularly in energy and consumer stocks.
The U.S. dollar index (DXY) continued to extend its gains despite falling U.S. Treasury yields. However, the dollar faces challenges as the Federal Reserve (Fed) reiterates expectations for three interest rate cuts in 2024. The market generally believes that the Federal Reserve will start an easing cycle in June, and the timing of the next interest rate cut will depend on upcoming economic data.
