24.03.202502:15:09UTC+00Australian Dollar Rises on Strong PMI Data

On Monday, the Australian dollar rose to nearly $0.63, breaking a four-day losing streak, following positive private sector activity data which lifted market sentiment. March witnessed the fastest expansion in manufacturing activity in 29 months, alongside accelerated growth in the services sector. This data supports the Reserve Bank of Australia's (RBA) cautious approach toward further interest rate cuts. Last week, RBA Assistant Governor Sarah Hunter highlighted that the February rate cut aimed to alleviate restrictive policy but stressed that the central bank is more cautious about additional cuts than market trends suggest. Expectations regarding rate cuts remain divided. Some analysts predict a possible action as early as May, while others foresee it in July or August. Externally, the Australian dollar also gained strength due to anticipated increased stimulus from China and speculations that U.S. President Donald Trump's reciprocal tariffs might not be as aggressive as initially feared.