Australian Dollar Extends Gains Despite Mixed PMI
Analysts: The Reserve Bank of australia will obtain sufficient employment data to justify the rationale for interest rate cuts.
On November 22, Grawonghui reported that Gareth Aird, the economic manager of the Commonwealth Bank of australia, stated that there are increasing signs that australia's unemployment rate does not need to rise from its current level, and the necessary data to justify interest rate cuts can be obtained from the australian federal government. Aird expects an interest rate cut in February next year, as wage growth has slowed and is consistent with inflation returning to the target range of 2%-3%. Over the past six months, the unemployment rate has hovered around 4.1%, and Aird still believes that a higher unemployment rate may not be necessary to bring inflation back to the target. He added that,
According to the "Economy," Australia's November S&P manufacturing PMI preliminary value rose to 49.4, reaching a six-month high, while the services PMI fell to 49.6, marking a ten-month low.
S&P Global announced that after seasonal adjustment, Australia's November S&P manufacturing PMI initial value rose from 47.3 to 49.4, reaching a six-month high. The manufacturing output index initial value also rose from 44.7 to 47.9, marking a six-month high as well. The service sector PMI initial value for the same month dropped from 51 to 49.6, falling into contraction and reaching a ten-month low. Australia's composite PMI initial value in October fell from 50.2 to 49.4, also entering contraction and hitting a ten-month low. During this period, private enterprises in Australia only slightly increased hiring, and idle capacity remained evident. External demand was weak, and new business growth slowed. Although the operation environment...
RBA Has the Labor Market Data It Needs to Justify a Rate Cut, CBA Says -- Market Talk
Australia's Judo Bank Manufacturing PMI Improves to 49.4 in November, Services PMI Eases to 49.6
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