Positive Virus Situation and China PMI Spark More Optimistic Outlook for the Australian Dollar
According to a report by Reuters, Australian Prime Minister Scott Morrison presented an optimistic outlook on the country’s handling of the Coronavirus situation. This sparked a more positive mood for the Aussie Dollar.
The increase in positive tone was also coupled by the release of China’s Caixin Service Purchasing Manger’s Index. The March PMI report showed an increase to 43.0 compared to last month’s 26.5. This was able to push the Aussie Dollar to make a rally due to Australia’s strong trading partnership with China.
On a global note, what does the increase in PMI level mean? These numbers suggest that global economic situations are stabilizing from the effect of the pandemic outbreak.
These two factors have suggested that the overall economic circumstance of Australia has been pretty good for the time being. However, it is still too soon to say whether or not the Aussie will make a significant gains until the spread of the pandemic has stopped– which may not be anytime soon.
For the time being, the Aussie is still in its downward momentum.
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