Ella 
The Australian dollar (AUD) snapped a three-day losing streak on Thursday, likely driven by improving risk appetite. However, the Australian dollar came under pressure after the Melbourne Institute released consumer inflation expectations. Consumers’ expectations for inflation over the next 12 months fell to 4.1% in May from 4.6% in April, the lowest level since October 2021.
Australia’s private sector activity expanded for a fourth consecutive month in May. The preliminary Judo Bank Composite Purchasing Managers Index (PMI) fell to 52.6 in May from 53.0 in April, indicating a slight slowdown in growth. The main driver of growth came from the expansion of the services sector, while the decline in manufacturing output slowed.
The U.S. dollar (USD) remains strong after recent gains as minutes from the Federal Open Market Committee’s (FOMC) latest policy meeting are released on Wednesday. Federal Reserve (Fed) policymakers expressed concern about the lack of progress in inflation, which proved more persistent than expected in early 2024. As a result, the Fed is hesitant to cut interest rates.
