**AUD/USD Moves Lower Despite Strong Australian PMI: Focus Shifts to US Economic Data**
*Based on reporting by FxStreet, with supplemental research and references from Reuters, Investing.com, and DailyFX.*
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**Introduction**
The Australian Dollar (AUD) recorded a moderate dip against the US Dollar (USD) in early Thursday trading sessions. This movement in the AUD/USD currency pair occurred despite Australia posting robust Purchasing Managers’ Index (PMI) data, underscoring resilience in the nation’s private sector. Market participants remain vigilant, anticipating several key macroeconomic releases in the United States that could further influence currency trends and overall sentiment.
This detailed breakdown investigates the latest AUD/USD movements, delves into key economic drivers, reviews expectations for US data releases, and presents perspectives from multiple authoritative sources in the Forex landscape.
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**Recent Performance of AUD/USD**
– The AUD/USD pair began Thursday with mild losses, trading just below the 0.6550 mark.
– Despite initially showing strength as Australia released solid PMI numbers, the Aussie Dollar failed to maintain upward momentum.
– Forex traders attribute the currency’s loss primarily to broad-based USD firmness, as investors appear cautious ahead of critical US economic releases and Federal Reserve cues.
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**Australia’s PMI Data: Key Takeaways**
– S&P Global released manufacturing PMI for Australia at 47.5, while the services PMI came in at a robust 50.7 for June.
– Manufacturing PMI: Indicates contraction (below 50), yet a slight improvement from previous months.
– Services PMI: Back above the crucial 50 mark, signaling a modest expansion in business activity after a subdued period.
– The Composite PMI, which combines both manufacturing and services, reflected overall expansion in the economy.
– According to S&P Global, service sector growth compensated for manufacturing weakness. Rising export orders and domestic demand helped offset cost pressures and high interest rates.
– Anneke Thompson, chief economist at CreditorWatch, commented that while the manufacturing sector continues to face headwinds, the service sector’s resilience provides a positive outlook for the broader Australian economy.
– The Reserve Bank of Australia (RBA) recently maintained its policy rate at 4.35 percent, signaling a data-dependent approach amid sticky inflation and global uncertainties.
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**US Dollar Strength Before Data Releases**
– The US Dollar Index (DXY) hovered near multi-week highs, keeping upward pressure on the greenback relative to risk-sensitive currencies like the AUD.
– Recent hawkish commentary from Federal Reserve officials, including Minneapolis Fed President Neel Kashkari and Fed Governor Michelle Bowman, has pushed up US Treasury yields, enhancing USD appeal.
– Traders are watching for clues on whether the US central bank will maintain higher rates for longer or consider rate cuts later this year.
– The cautious mood in the lead-up to US data releases—including jobless claims, the S&P Global manufacturing and services PMI, and existing home sales—has encouraged further safe-haven inflows into the Dollar.
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**Key US
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