AUD/USD surges on improved risk appetite, positive PMIs

The Australian dollar (AUD/USD) has risen over 0.54% against the US dollar, reaching 0.6449, driven by gains in Wall Street and a flat US Dollar. The Australian Manufacturing PMI, which rose to 49.9 in April, indicates expansion.

The US Economic Data Center (CFNAI) also showed a rise in March, with the index’s three-month moving average increasing from -0.28 in February to -0.19 in March.

The AUD/USD is expected to be influenced by the release of the March Personal Consumption Expenditure (PCE) Price Index, which is the Fed’s preferred gauge for inflation.

The US economic docket will be busy with S&P Global PMIs, housing data, Durable Goods Orders, GDP for the first quarter of 2024, and the release of the March Personal Consumption Expenditure (PCE) Price Index. The AUD/USD is expected to bounce off yearly lows, shy of the 0.6450 area.