Ella 
AUD/USD continued its upward momentum during Wednesday’s Asian trading session, hovering around 0.6510. The Australian dollar (AUD) was supported by the release of domestic mid-sized economic data and improved global trade sentiment.
In April, the AiG industry index rose 5.1 points to -15 after seasonal adjustment, showing a modest improvement despite the continued headwinds faced by the industrial sector. Challenges such as global trade uncertainty, currency fluctuations and the upcoming federal election continued to weigh on activity. Meanwhile, the AiG manufacturing purchasing managers’ index (PMI) rose 3.0 points to -26.7, an improvement from -29.7 in the previous month.
Sentiment towards the Australian dollar also improved as US-China trade tensions showed signs of easing. In a key development, US Treasury Secretary Scott Bessant and Trade Representative Jamieson Greer will meet with Chinese Vice Premier He Lifeng in Geneva over the weekend, marking the first high-level talks since the US imposed tariffs and escalated into a global trade dispute.
China’s Ministry of Commerce said Beijing has agreed to participate in the upcoming negotiations after carefully evaluating the US proposal and considering global expectations, national interests and industry feedback.
Looking ahead, investors’ attention is firmly locked on the Federal Reserve’s (Fed) interest rate decision later on Wednesday. Although the Fed is widely expected to keep interest rates unchanged, the market will carefully examine the comments of Fed Chairman Jerome Powell for any hint of a possible rate cut in the near term.
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