Australian Dollar slips after upbeat US ISM Manufacturing data
AUD/USD extends its pullback toward the 0.6990 area during Monday's American session after stronger-than-expected United States (US) manufacturing data reinforced the US Dollar (USD).
The Australian Dollar (AUD) experienced a slight decline against the US Dollar (USD) on Monday, moving towards the 0.6990 level following stronger-than-anticipated US manufacturing data. The ISM Manufacturing Purchasing Managers Index (PMI) rose to 55.6 in July, surpassing expectations of 54.0 and marking an improvement from 53.3 in June.
This positive economic signal bolstered the US Dollar, impacting risk-sensitive currencies like the Australian Dollar. However, the Prices Paid Index, which indicated inflationary pressure, showed a softer reading of 71.1, potentially tempering expectations of an aggressive Federal Reserve stance. Analysts now await the release of S&P Global Services and Composite PMIs for July, which could provide further insights into the health of Australia's services sector.
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