Australian Dollar gains ground as Services PMI marks fifteen consecutive months of growth

• Australia's dollar was strengthened after prime minister Anthony Albanese gained a second three -year term in the 2025 federal election.
• Australia's Judo Bank Composite PMI arrived at 51.0 for April, marked the seventh consecutive month of expansion.
• President Trump has confirmed that he does not intend to replace the Fed Chair Powell before his term ends in May 2026.

The Australian Dollar (AUD) expands its acquisitions against the US dollar (USD) for a second consecutive session on Monday. The AUD/USD pair rises after Australia's Prime Minister Anthony Albanese gained a second three -year term in the 2025 federal election, achieving significant acquisitions in Saturday's results.

Labor Party leader Albanese has claimed a majority in Parliament, with more than 45% of the votes counting. His re-election marked the first time in the decades when a leader won back-to-back terms, defeating opposition leader Peter Dutton of the center right liberal-national coalition.

Economic data The AUD was also supported, along with Australian's Judo Bank Composite Purchasing Managers Index (PMI) posting 51.0 reading in April. This indicates the ongoing expansion for a seventh straight month, though the speed slows from 51.6 in March. PMI services also arrive at 51.0, which marks fifteen consecutive months of growth.

In external development, China's commerce ministry announced Friday that Beijing was considering a US offer to continue trade communication. It follows the recent comments of US president Donald Trump, claiming that negotiations are already developing. However, Trump added that he had no plans to talk to Chinese President Xi Jinping this week. Any signs of increasing tension between the US and China may negatively affect the AUD, which has been given a strong relationship with the Australian trade with China.

Meanwhile, US companies planning to transfer production from China to domestic facilities may need to be reviewed, following Trump's latest comments on tariffs. Speaking this weekend, Trump recognized the potential impact of high tariffs: “At some point, I'll lower them, because otherwise you can't do business with them, and they want to do business so much.”

Australian dollar appreciated while US dollar struggles preceded the ISM PMI services

• The US Dollar Index (DXY), which tracks the USD against a basket of six major currencies, loses its land for a second -day -to -day, trading near 99.80 at the time of writing. Later during the day, entrepreneurs will guard for the US ISM services PMI for further direction.
• President Trump has confirmed that he will not seek to replace the Federal Reserve Chair Jerome Powell before his term ends in May 2026. Although Trump criticized Powell, he called him “a total tough,” he maintained that interest rates should be lowered.
• In other policy movements, Trump announced plans to educate the US trade representative and Commerce department to begin the process of imposing a 100% tariff in foreign films.
• The US Nonfarm Payrolls (NFP) report for April presented a stronger expectation of 177,000 jobs, following a modified gain of 185,000 in March. It exceeds the market forecast of 130,000. The unemployment rate remained unchanged by 4.2%, while the average hourly income rose 3.8% year-on-year, corresponding to last month's figure.
• US Secretary of Treasury Janet Yellen warned that Trump's tariffs could have “severe adverse effects” on the US economy. Treasury Secretary Scott Bestent noted that the reversible yield curve, with two people harvested under the rate of federal funds, supported the case for federal rates.
• The Australian Bureau of Statistics reported on Thursday the excessive trade of AUD 6.9 billion for March, which significantly exceeded the expectations of AUD 3.13 billion and the revised February Figure of AUD 2.85 billion (down from AUD 2.97 billion). Strong excess is driven by a 7.6% increase in exports and a 2.2% decline in imports for the month.
• Australia's retail sale on Friday-a key indicator of consumer spending-increased 0.3% month-to-month in March, from a 0.8% increase in February (modified from 0.2%), according to data released Friday by the Australian Bureau of Statistics (ABS). However, the figure fell into market expectations, with a prediction of a 0.4% gain.
• Australian treasurer Jim Chalmers noted that markets are still expecting additional interest rate cuts. “The market expects more interest rate cuts after inflation numbers,” he said, adding that there is “none of these numbers that will significantly change market expectations.”
• Inflationary pressures in Australia in early 2025 have weakened the expectations of further financial exercise of the Reserve Bank of Australia (RBA). However, markets expect a 25-base-point rate cut in May, as policy manufacturers are preparing for possible economic collapse from recent US tariffs.
• According to Bloomberg, China considers a change in the US trade communication. The Chinese commercial Ministry of Commerce noted that Washington has reached to express interest in the continuation of negotiations. However, China has been reported to have been conducting an internal assessment and maintaining that the US should correct tariff -related actions, which it views as a unilateral trigger for ongoing trade disputes.

Australia's dollar rises up to 0.6500 near five months tall

AUD/USD pair traded around 0.6460 on Monday, maintaining a bullish bias on sunny chart. The pair continues to hold above the nine-day exponential transfer of the average (EMA), while the 14-day relative index index (RSI) remains comfortable above 50, both suggesting a long momentum.

Upside down, the AUD/USD pair may approach five months high to 0.6515, followed by a psychological level of 0.6600.

The AUD/USD The pair could find initial support in the nine-day EMA at 0.6408, following the 50-day EMA at 0.6326. A violation below these levels can weaken the bullish outlook and may expose the pair to 0.5914, the lowest since March 2020.

AUD/USD: Daily -Gales Chart

(This story was corrected on May 05 at 02:50 gmt to say, on the first technical examination line, with the AUD/USD pair trading around 0.6460 on Monday, not on Thursday.)