Austria is facing a reduced demand in both the manufacturing and service sectors.

The Australian dollar has strengthened, reaching its highest level in the past week, due to the Australian inflation rate being adjusted downwards. Furthermore, in the latest RBA meeting report, it is indicated that there is consideration to raise the interest rate policy in October before deciding to keep the interest rate policy at 4.1%. Investors speculate that the RBA may raise interest rates again as the inflation target remains at 2%. Current inflation is considered high compared to the target, although there is a trend of slight decline.

The Reserve Bank of Australia (RBA) has kept the interest rate unchanged at 4.1%, which is the fourth consecutive month of keeping the interest rate stable. Policymakers have noted that inflation has passed its peak but may require further monetary tightening to bring inflation back to the target of 2-3% by the end of 2024. However, this will depend on the future economic growth.

Despite Australia's stronger-than-expected economic growth in the first half of the year, it is still considered lower than the trend of previous years. Import and export expectations are reduced, especially from China, where growth remains uncertain. At the same time, it is expected that the unemployment rate will gradually increase to around 4.5% by the end of 2027, but the interest rate will be reduced to 4%.

Australia's manufacturing sector PMI decreased to 48 in October, marking the eighth consecutive month of contraction and the lowest figure in six months. This is due to a decrease in production and new orders, both domestically and internationally. Additionally, rapid increases in raw material costs due to continuously rising oil prices have also played a role. Employment has seen a slight increase, but weak economic data has significantly reduced business confidence.

Australia's services sector PMI dropped to 47.6 in October, experiencing the most significant decline since the beginning of the year. This has been impacted by high interest rates and rising wages, causing continuous cost pressures. As a result, many companies have increased prices for their products and services.

The unemployment rate in Australia has decreased to 3.6%, with the number of unemployed people reduced to 520.5 thousand. Hiring has increased slightly in both the manufacturing and service sectors, with an increase of 6.7 thousand, totaling 14.11 million people. However, this is still less than the expected 20 thousand people. Most of the job hires are full-time positions, and there has been a significant increase.

Techical analysis data (5H)

Resistance: 1.5741, 1.5777, 1.5808

Support: 1.5674, 1.5643, 1.5608

Source: Investing.com