The Australian Dollar (AUD) strengthened against the US Dollar (USD) on Monday (3/24) after two consecutive days of losses. The AUD/USD pair rose as the AUD found support following the release of preliminary Judo Bank Purchasing Managers' Index (PMI) data.
Australia's Judo Bank Manufacturing PMI rose to 52.6 in March from 50.4 in February, while the Services PMI improved to 51.2 from 50.8. The Composite PMI also improved, reaching 51.3 in March compared to 50.6 previously.
The AUD also gained traction as analysts anticipate the Reserve Bank of Australia (RBA) to keep interest rates unchanged in April after cutting borrowing costs for the first time in four years in February. Furthermore, expectations of Chinese stimulus boosted the Australian economy.
The AUD/USD pair also benefited from improved risk sentiment as the White House adjusted its tariff strategy ahead of the April 2 implementation, according to the Wall Street Journal. Additionally, geopolitical tensions eased as Ukrainian and US officials met in Riyadh on Sunday to discuss peace efforts. Meanwhile, President Trump continues to advocate an end to the three-year war. (Newsmaker23)
Source: FXstreet
