The Australian dollar held its ground on Tuesday, trading with a slight upward bias after the latest Judo Bank PMI figures signaled steady growth in the country’s private sector. The data offered a modest boost to market sentiment, helping the currency shrug off earlier weakness tied to global risk concerns.
The AUD/USD pair hovered near 0.6440, maintaining gains seen earlier in the session. While the broader market tone remained cautious, the PMI release indicated continued expansion in both services and manufacturing, suggesting that Australia’s economy is showing some resilience despite external headwinds.
Judo Bank’s flash Composite PMI came in above the 50.0 mark, pointing to mild but consistent activity growth in April. Traders interpreted the results as a sign that the domestic economy may not be slowing as quickly as feared, offering support to the Aussie at a time when global rate expectations remain in flux.
Still, gains for the currency were limited as investors await further clarity on U.S. inflation and interest rate policy, which continues to drive broader FX market direction. The Australian dollar remains vulnerable to shifts in global risk appetite and China-related headlines, given the country’s deep trade ties to Asia.
“With limited surprises in the PMI numbers, the Aussie is being propped up more by the fact that the data didn’t disappoint,” said a Sydney-based FX strategist. “It’s enough to keep the currency steady in the near term, but we’ll need stronger catalysts for any real breakout.”
For now, the Australian dollar appears to be consolidating, with the Judo Bank data helping to stabilize sentiment ahead of key macro releases later in the week.
