23.09.202502:35:09UTC+00Aussie Dollar Weakens on Disappointing PMI Data

On Tuesday, the Australian dollar slipped below $0.658, undoing the gains made in the prior session as investors digested disappointing PMI figures. Preliminary data indicated a drop in the composite PMI to 52.1 in September from 55.5 in August. Although this represented the twelfth consecutive month of expansion, it also highlighted the slowest growth rate within this period, with both the manufacturing (51.6 versus 53) and services (52 versus 55.8) sectors exhibiting signs of slowing down. Attention now shifts to Wednesday's Monthly CPI indicator, which will determine whether the inflation surge in July was primarily due to the cessation of electricity subsidies or a result of more extensive price pressures. Should inflation remain elevated or rise further, expectations for the Reserve Bank of Australia (RBA) to cut rates might be postponed until later next year. On Monday, Governor Michele Bullock remarked that while recent data have aligned with forecasts, the RBA remains vigilant to evolving economic conditions. She further commented that recent rate reductions are anticipated to buoy consumer spending, yet acknowledged the global economic outlook remains "uncertain and unpredictable."