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AUD/USD slips toward 0.6990 after stronger US ISM data
July ISM Manufacturing rose to 55.6, boosting the USD and pulling AUD/USD down from above 0.7050 earlier in the week.
AUD/USD extended its pullback toward the 0.6990 area in the US session, after stronger-than-expected US manufacturing data reinforced the US dollar, according to FXStreet.
The ISM Manufacturing Purchasing Managers Index (PMI) rose to 55.6 in July, beating expectations for 54.0 and improving from 53.3 in June. New Orders climbed to 56.7 from 56.0, signaling firmer demand, while the Prices Paid index eased to 71.1 from 73.0 but remained well above 50.
FXStreet said the stronger ISM readings helped lift US Treasury yields and weighed on risk-sensitive currencies such as the Australian dollar. At the same time, the softer Prices Paid component could limit expectations for an even more aggressive Fed if inflation cools gradually.
Ahead of further cues, markets will watch Australia’s final S&P Global Services and Composite PMIs for July, expected to be 53.0 for services and 52.6 for the composite. Traders will also monitor China’s privately compiled RatingDog Services PMI, forecast at 53.7 in July, and the pair last traded around 0.6993 on technicals, near the 20-period simple moving average.