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    In November, Australia’s S&P Global Services PMI reached 52.8, surpassing the forecasted 52.7.

    by VT Markets
    /
    Dec 3, 2025
    Australia’s S&P Global Services PMI hit 52.8 in November, slightly higher than the expected 52.7. This increase shows that the services sector is still growing, indicating more economic activity. The services sector significantly contributes to Australia’s economic growth, driven by high demand. This information could influence future decisions made by the Reserve Bank of Australia (RBA) as they assess the economy.

    Market Response Expected

    We will provide more updates as the markets react to this news. The strong services data for November indicates that the Australian economy is holding up well. This puts pressure on the RBA to maintain higher interest rates for an extended period to tackle inflation. As a result, we can expect reduced speculation on immediate rate cuts. With inflation remaining above the RBA’s target for much of 2025, traders are closely monitoring interest rate futures. We can anticipate selling pressure on contracts linked to the official cash rate, suggesting a higher chance that rates will not be lowered in the first quarter of 2026. This trend mirrors what we saw after the positive Q3 GDP results earlier this year.

    Impact on Currency and Stock Market

    This outlook supports the Australian dollar, as higher interest rates draw foreign investment. A popular strategy is buying AUD/USD call options, betting on the Australian dollar’s rise against the US dollar. Historically, the Aussie dollar performs well when the RBA maintains a tough stance compared to a more neutral US Federal Reserve. However, this news might challenge the stock market. The likelihood of ongoing high borrowing costs could lower corporate profit expectations, potentially limiting gains on the ASX 200 index. It may be wise to consider using put options on the index as protection against a possible market downturn, especially in rate-sensitive sectors like technology and real estate. Create your live VT Markets account and start trading now.

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