Ella 
AUD/USD fell for a third straight day on Thursday, down 0.20%, as investors digested the latest S&P Global PMI report from the United States, which suggested the economy is reaccelerating. As a result, prospects for a rate cut by the Fed have taken a hit, with traders expecting the central bank to introduce 27 basis points of easing by the end of the year. AUD/USD was at 0.6605, little changed.
Wall Street closed lower. The S&P Global Composite Purchasing Managers’ Index (PMI) rose to 54.4, its highest level in 12 months. The services purchasing managers’ index (PMI) rose to 54.8, the highest level since October 2022, and the manufacturing purchasing managers’ index (PMI) was 50.9, beating expectations of 50.0.
AUD/USD moved from around 0.6650 towards 0.6618 following the data release. Previously, the U.S. Department of Labor (DOL) reported a lower-than-expected number of initial jobless claims in the U.S. at 215,000, down from 220,000 and well below the previous figure of 223,000.
Economic data on Thursday, as well as minutes from the latest Fed meeting, showed that Fed officials are ready to tighten policy “if risks to the economic outlook materialize and make such action appropriate.” Fed officials also said the deflation process “will be more protracted than previously expected” and will therefore require raising interest rates for a longer period of time.
