China’s manufacturing PMI fell to 51.7 in June, pressuring the Aussie dollar amid sluggish demand and a stronger US dollar.
The AUD/USD pair retreated below 0.6900 in Asian trading, erasing earlier gains after China’s private manufacturing PMI slipped to 51.7 in June from 52.2 in May. The data reinforced concerns over weak domestic demand and consumer spending in China, weighing on the commodity-linked Australian dollar.
Official PMIs released earlier this week also signaled tepid business activity, further undermining the China-proxy Aussie. A modest uptick in the US dollar, supported by hawkish Federal Reserve expectations and geopolitical uncertainty, added to the downward pressure.
US job openings rose to 7.594 million in May, a two-year high, underscoring labor market resilience and bolstering the dollar’s safe-haven appeal amid stalled US-Iran negotiations.