Australian Dollar holds despite weak Chinese PMIs
AUD/USD trades around the 0.7020 area during Friday's American session.
The Australian Dollar maintained its position despite weak Chinese PMIs. On Friday's American session, AUD/USD traded around the 0.7020 mark. Despite stronger Australian inflation expectations, disappointing Manufacturing and Non-Manufacturing PMIs from China dampened demand for the Australian Dollar. China's production activity fell to 49.2 in Manufacturing PMI and 49.0 in Non-Manufacturing PMI, both below the 50.0 consensus, indicating contraction.
Meanwhile, Australia's Producer Price Index (PPI) rose to 3.6% YoY in Q2, suggesting inflation pressure remains elevated. Despite this, the US Dollar benefited from hawkish comments from Federal Reserve officials, such as Dallas Fed President Lorie Logan, who stated that monetary policy is not restraining the economy and that inflation is not on track to return to the Fed's 2% target.
The AUD/USD pair held a mild bullish bias near horizontal support at 0.7025, with buyers retaining control in the near term, according to technical analysis. Resistance and support levels were identified at 0.7039 and 0.6992, respectively, with potential for further movement depending on market factors.
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