Global financial markets are currently basking in a robust wave of risk-on sentiment, evidenced by Japan's Nikkei and Europe's Stoxx 600 indices reaching new record highs. The optimism is further bolstered by promising US futures, with the technology sector leading the charge, significantly propelled by Nvidia's impressive results. This surge in tech enthusiasm is largely fueled by the ongoing artificial intelligence boom, which seems poised to captivate market sentiment for the foreseeable future.
The Australian Judo Bank Manufacturing Purchasing Managers' Index (PMI) for January showed business growth eked out a crawl of 50.1 MoM, stepping up from December's 47.6 as Australia heads further into a soft landing economic scenario.
The AUD/USD opened the Asian session virtually unchanged, but on Tuesday registered decent gains of 0.14%, bracing at around the 200-day moving average (DMA) at 0.6578.
Australia PMI Manufacturing rose from 47.6 to 50.3 in January, back in expansion, and a 11-month high. PMI Services rose slightly from 47.1 to 47.9, a 3-month high. PMI Composite rose from 46.9 to 48.1, a 4-month high, but still in contraction.
The forex markets are currently extending a phase of indecision. Dollar, after briefly rallying against Euro and Swiss Franc, saw its gains diminish. Australian Dollar's initial surge, fueled by optimism over China's proposed stock market rescue plan, also quickly dissipated. Presently, Japanese Yen emerges as the strongest currency for the week, continuing its near-term consolidation. It is closely followed by Dollar and British Pound. On the other end of the spectrum, Australian Dollar is lagging, trailed by Canadian Dollar and Euro.