02.09.202503:02:31UTC+00Aussie Dollar Snaps Five-Day Rally

The Australian dollar declined to approximately $0.654 on Tuesday, ending a five-day rise, as investors took a breather amid conflicting domestic economic indicators. Australia's current account deficit reduced to its lowest level in over a year during the second quarter of 2025, surpassing market expectations. Additionally, manufacturing activity surged to its highest point in nearly three years in August 2025, marking the eighth consecutive month it exceeded the crucial 50-point expansion mark. Conversely, business inventories experienced their slowest growth since the contraction observed in the third quarter of 2024. In the housing sector, while private house approvals showed a modest recovery in July, there was a significant decline in total dwelling approvals, which fell short of predictions and negated the strong gains made in June. Looking forward, investors are anticipating the release of PMI data later today, followed by GDP figures and a speech by RBA Governor Michele Bullock tomorrow, which might offer further insights into the central bank’s monetary policy direction.