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The Australian dollar (AUD) was slightly lower against the U.S. dollar (USD) following the release of the Judo Bank Purchasing Managers’ Index (PMI) on Friday. However, the AUD/USD pair gained ground after U.S. President Donald Trump announced potential progress in trade talks with China, easing concerns about tariffs. Traders will be watching for a preliminary reading of the U.S. S&P Global Purchasing Managers’ Index (PMI) due later on Friday.
Australia’s Judo Bank manufacturing PMI rose to 50.6 in February, up from 50.2 in January. The services PMI improved to 51.4 from 51.2, while the composite PMI edged up to 51.2 from 51.1.
Reserve Bank of Australia (RBA) Governor Michelle Bullock has warned that easing monetary policy too quickly or too much could cause the disinflation process to stall, potentially keeping inflation above the mid-point of the target. Bullock stressed the RBA’s commitment to data-driven decision-making and careful risk assessment, suggesting that while a rate cut was still possible, a cautious approach was needed.
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