AUD is declining for the second day. Overview for 05.03.2024

The Australian dollar is declining smoothly against the US dollar. The current AUDUSD exchange rate stands at 0.6499.

Morning statistics showed that the PMI in the services sector rose to 53.1 points in February from 49.1 points earlier. The forecast expected an increase to 52.8 points. The fact that the indicator returned above the psychologically important level of 50 points is undoubtedly positive. This means that optimism prevails in the non-manufacturing sector.

Interestingly, the Aussie is under pressure against a relatively weak US dollar. After the US released a stream of rather bleak macroeconomic reports, market confidence in an upcoming interest rate cut increased, weighing on the dollar. Simultaneously, US treasury bond yields declined.

However, the attitude towards risk in the global currency market appears cautious, likely due to the dynamics seen in the Aussie.