AUD/USD loses momentum below 0.6550 following Australian Judo Bank PMI data

The AUD/USD pair faces a rejection of 0.6600 and trades around 0.6538 during the early Asian session on Thursday. The downtick of to pair is backed by renewed US Dollar (USD) demand after the US economic reports. Markets remain subdued ahead of the Thanksgiving Day holiday in the United States on Thursday, and trading sessions on Friday will be shortened.

The latest data on Thursday suggested more evidence about the economic slowdown in Australian economic activity in November. The preliminary Australian Judo Bank Manufacturing PMI for November came in at 47.7 compared to the previous month’s 48.2, its worst reading in 42 months. Meanwhile, Judo Bank Services PMI eased to 46.3 versus 47.9 prior, and the Composite PMI hit a 27-month low of 46.4 in November from the previous reading of 47.6. The softer data weighs on the Australian Dollar (AUD) and acts as a headwind for the AUD/USD pair.

On the other hand, the US University of Michigan Consumer Sentiment Index experienced its fourth consecutive monthly decline in November, arriving at 61.3 from an initial reading of 60.4. Additionally, Durable Goods Orders fell 5.4% MoM in October from a 4.6% rise in the previous month. About the labor market data, the weekly Jobless Claims unexpectedly fell to 209K, the biggest fall since June. Continuing Claims declined to 1.84M versus 1.862M prior.

Market volumes were light ahead of the Thanksgiving holiday in the US. Equities extended their rally as the market believe that the Federal Reserve's (Fed) tightening cycle is complete.

Looking ahead, market participants will keep an on the preliminary US S&P Global PMI for November, due on Friday. The Manufacturing PMI and Services PMI readings are expected to rise 49.8 and 50.4, respectively. Traders will take cues from the figures and find trading opportunities around the AUD/USD pair.