Australian Dollar stalls below 0.7170, halfway through last two weeks’ range
The Australian Dollar (AUD) edges down against the US Dollar (USD) on Thursday, following a narrowing trade surplus in Australia and fairly positive PMI data from China, a key trading partner.
The Australian Dollar (AUD) retreated to 0.7160 against the US Dollar (USD) on Thursday, after posting gains in the previous session. The pair found its midpoint halfway through its trading range over the past two weeks. A narrowing trade surplus and positive PMI data from China have dampened AUD demand. US interest rate expectations have risen due to hawkish comments from Federal Reserve Chairman Kevin Warsh, further supporting the USD.
Australian Trade Balance data showed a narrowing surplus of 1.923 million in July, which was weaker than expected. Simultaneously, China's PMI rose from 50.4 to 51.4, signaling a stronger-than-expected services sector. Meanwhile, US ADP figures revealed a modest 38,000 increase in private sector employment. Despite a strong start on China's side, AUD/USD struggled to capitalize on the bounce from a near two-week low due to disappointing Australian trade data.
The USD's weakness was also fueled by US bond yields and a weak ADP report, which weighed on the Dollar and reinforced AUD's support.
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