Aussie dollar rises above $0.62 despite weaker manufacturing data

The Australian dollar climbed above $0.62 on Thursday, bouncing back from two-year lows, supported by more substantial commodity prices, which bolster Australia's position as a key resource exporter.

Aussie dollar rises above $0.62 despite weaker manufacturing data

The Aussie also benefited from a softening US dollar, as investor caution grew at the start of the year. However, a private survey showed that manufacturing activity in China, Australia’s largest trading partner, slowed in December, missing expectations for more vigorous growth. At the same time, domestic data indicated a worsening downturn in Australia's manufacturing sector.

Aussie dollar drops 9% in 2024, rate cut expected in 2025

The Aussie dropped 9% in 2024 due to the Reserve Bank of Australia's more dovish stance amid economic concerns. Market expectations now suggest a quarter-point rate cut in April, with some anticipating a move as early as February.