The Australian Dollar declines 0.3% against the US Dollar amid stronger USD demand and mixed Chinese manufacturing data.
AUD/USD fell to around 0.7000 on Monday, down 0.3% as a rebound in the US Dollar offset support from Chinese economic indicators. The decline follows a weaker-than-expected Chinese manufacturing PMI, which slowed to 50.9 in July from 51.7 in June, missing forecasts of 51.5.
Despite the miss, the PMI remained above the 50 threshold, signaling continued expansion in China’s manufacturing sector. The Reserve Bank of Australia’s hawkish stance, with underlying inflation still above its 2%-3% target, also failed to lift the currency. Meanwhile, the USD regained ground amid geopolitical tensions after conflicting statements from US and Iranian officials.
Markets are pricing in potential further RBA rate hikes this year, though the immediate focus remains on USD strength and broader risk sentiment.