- AUD ignores mixed PMI data from Australia at the start of the week.
- US Dollar Index climbs above 98.50 on Monday.
- Coming up: Markit Manufacturing and Services PMI data from the US.
The AUD/USD pair erased more than 100 pips last week and is now seems to have gone into a consolidation phase at the start of the new week. As of writing, the pair was trading at 0.6773, adding 0.07% on a daily basis.
Earlier today, the data published jointly by Markit Economics and Commonwealth Bank of Australia showed that the business activity in the service sector in Australia expanded in September while the manufacturing sector fell into the contraction territory with the preliminary Purchasing Managers Index (PMI) slumping to 49.4 from 50.9 in August and missing the market expectation of 50.9. Nevertheless, the pair's reaction to the mixed data was muted during the Asian trading hours.
USD gathers strength ahead of PMI data
On the other hand, heavy selling pressure surrounding the EUR following the disappointing PMI readings both in Germany and the eurozone allowed the Greenback to find demand. The US Dollar Index, which tracks the dollar's value against a basket of six major currencies, rose to its highest level since September 12 at 98.83 earlier in the session and was last at 98.70, where it was adding 0.23% on the day.
Later in the day, Markit Economics' Manufacturing, Composite, and Services PMI data from the US will be looked upon for fresh impetus. Markets expect the Composite PMI to edge lower to 49.6 from 50.7. Additionally, New York Fed President Williams is scheduled to deliver a speech at 13:50 GMT.
Technical levels to consider
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