Australia's manufacturing sector showed modest signs of a rebound in
June with a key industry gauge nearing expansionary territory for the
first time in two years.
The Australian Industry Group's
performance of manufacturing index rose 5.8 points to 49.6 in June from
May. That was below the 50 point level that signals an expansion. The
index has risen nearly 13 points in the past two months, in a nascent
sign deep interest rate cuts and a sharp decline in the Australian
dollar may be helping boost the sector.
Still, the latest rise
wasn't enough to offset concerns about the pace at which the economy is
rebalancing away from its reliance on resources as a long mining boom
slows.
The Reserve Bank of Australia's policy-setting board meets
on Tuesday, with most economists expecting rates to stay on hold after
the central bank cut the cash-rate target to a record 2.75% in May. The
Australian dollar, meanwhile, has fallen about 10% since early May.
Until recently it had recorded its longest stretch above parity with the
U.S. greenback in three decades, making the nation's exports less
competitive.
Source by Commodity Insights
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