RBA Steady Rate Supported by Slowing Demand – TD Securities
Softer Australian PMI data, featuring weaker new orders and moderating price pressures, supports the Reserve Bank of Australia keeping its cash rate unchanged at 4.35%, according to TD Securities.
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TD Securities strategist Prashant Newnaha commented that the softer S&P Australia Flash Composite PMI data bolsters the case for the Reserve Bank of Australia to hold its cash rate steady at 4.35%. The survey revealed a weakening in new orders and a moderation in price pressures, indicating slowing demand.
This data point is likely to reinforce the RBA's cautious stance as it balances inflation concerns against a cooling economy. Markets will focus on the RBA's next meeting for any shift in forward guidance.
Source: FXStreet Forex News