Daily Digest Market Movers: Australian Dollar remains steady due to investors’ caution
- The ASX 200 Index advanced toward 7,850 on Friday, with mining and energy stocks driving the market higher due to stronger commodity prices. This upward movement was influenced by signs of a cooling US labor market, which increased the Fed's expectations for two interest rate cuts this year.
- A Reuters poll from May 31 to June 5 indicated that nearly two-thirds of economists now predict an interest rate cut in September. Additionally, the CME FedWatch Tool suggests the probability of a Fed rate cut in September by at least 25 basis points has increased to nearly 70.0%, up from 51.0% a week earlier.
- Australia's Trade Balance widened to 6,548 ($ 4,321.68) million MoM in May, exceeding the expected 5,500 million and April's balance of 5,024 million. Imports plunged by 7.2% MoM in May, swinging from April’s 4.2% increase. Exports shrank 2.5% following the previous decline of 0.6%.
- On Wednesday, the ISM US Services PMI soared to 53.8 in May, marking its highest level in nine months and significantly surpassing the forecast of 50.8. In contrast, the ADP US Employment Change report showed that 152,000 new workers were added to payrolls in May, the lowest in four months and well below the forecast of 175,000 and the downwardly revised figure of 188,000 for April.
- Australia's Gross Domestic Product (GDP) was released on Wednesday, which grew 0.1% in the first quarter, against the expected 0.2% reading. On an annual basis, the economy grew 1.1%, slightly below the expected 1.2%.
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