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Australian dollar jumps above 0.7150 as US Treasury bond buybacks loom
AUD pushed to above 0.7150, supported by Australia’s July PMI data while the USD slid on a plan to double US Treasury bond buybacks from September.
The Australian dollar strengthened against the US dollar on Friday, climbing to session highs above 0.7150 for the first time since early June and moving closer to the 0.7200 area, according to FXStreet.
FXStreet cited Australia’s July business activity releases, showing manufacturing activity still expanding at a 52.0 PMI level, while services slowed to 52.9 from 53.6 in June and the composite PMI eased to 52.5 from 53.2.
The article said the main driver for the AUD-USD move was weakness in the US dollar, tied to a US Treasury announcement to double bond buybacks starting in September.
FXStreet also pointed to MUFG commentary that investors may view Treasury Secretary Scott Bessent’s fiscal consolidation pledges with skepticism, while noting that the US S&P Global preliminary PMIs are expected to show a moderate slowdown, with Services PMI projected to ease to 54.0 from 54.6 and Manufacturing PMI expected at 53.9.