The Australian dollar (AUD) weakened slightly against the US dollar (USD) following the release of a number of economic data, but then stabilized on Friday. Recent data showed that business activity in Australia is slowing. The Composite Purchasing Managers' Index (PMI) fell to 52.4 in September, from 55.5 in August. This indicates that economic growth is still ongoing, but at a slower pace, marking the lowest level since June. The services sector also slowed, although it continued to grow for 20 consecutive months.

Furthermore, Australia recorded a decline in its trade surplus. In August, the trade surplus reached only $1.825 billion, well below market expectations of $6.5 billion. This decline was due to a decline in exports, particularly gold, which had previously been a major contributor.

Meanwhile, imports actually increased by 3.2% after declining in July. This combination of declining exports and rising imports indicates a slowdown in Australia's foreign trade sector. The Reserve Bank of Australia (RBA) kept its benchmark interest rate unchanged at 3.6% at its September meeting. In its latest financial stability report, the RBA warned that high asset prices and debt pressures could pose risks to the market.

The RBA also highlighted the negative impact of the weakening property sector in China on the financial system, particularly Australian banks. Although inflation remains a concern, the central bank appears cautious in its next policy steps.

Source: Newsmaker.id