- AUD/USD recovers after upbeat Chinese Caixin Manufacturing PMI.
- Further upside lacks momentum amid mixed Aussie data, trade woes.
- Aussie awaits RBA for fresh impetus, US markets are out on Labor Day.
With the new US-Sino tariffs kicking-in, the AUD buyers seem to lack vigor so far this Monday, leaving AUD/USD in a tight range between 0.6720-0.6735 levels.
RBA to stand pat on Tuesday – Scotiabank
The spot managed to pull off the lows reached in early Asia after the CBA Manufacturing PMI for August arrived at 50.9 points, down from 51.6 points in July. However, the renewed upside fizzled out following mixed Australian ANZ Jobs Advertisement data and Company Operating Profits numbers.
However, the bulls once again regained poise and hit session highs at 0.6735 following an unexpected expansion seen in the Chinese manufacturing sector in August, as reflected by the Caixin Manufacturing PMI data that came in at 50.4. The recovery was shallow, as markets continued to weigh the lingering US-China trade war fears after both the US and China imposed fresh tariffs on each other’s’ goods on Sunday.
The commodity-currency also failed to get any boost from the commodities, as gold traded on the back foot amid a broadly stronger US dollar while oil prices were little changed amid the latest tariffs.
Meanwhile, the bulls remained cautious ahead of the Australian Retail Sales and Trade report due on Tuesday ahead of the key Reserve Bank of Australia (RBA) monetary policy decision. The RBA is widely expected to keep the policy steady, as they want to wait and watch the impact of the previous rate cuts.
In the meantime, the pair will remain at the mercy of the USD dynamics and risk trends amid holiday-thinned quiet trading.
AUD/USD Technical levels to consider
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold: Record-setting rally remains intact ahead of US PCE data
Gold price refreshes a fresh all-time peak, closing on the $3,100 mark. The global risk sentiment continues to be undermined by worries over Donald Trump's auto tariffs announced earlier in the week, with traders rushing for safety in Gold price. US PCE inflation data awaited.
EUR/USD trades with mild losses below 1.0800, awaits US PCE
EUR/USD is on the back foot below 1.0800 early Friday, struggling to capitalize on the previous day's goodish bounce. Trump's tariff jitters keep investors on the edge, leaving the pair gyrating in a range ahead of the key US PCE inflation data.
GBP/USD holds steady near 1.2950 after UK data
GBP/USD stays quiet and fluctuates near 1.2950 in the European session on Friday. Uncertainty over US President Trump's tariff plans weigh on risk mood and caps the pair's upside, even after February Retail Sales data from the UK came in better than expected.
US core PCE inflation expected to remain sticky, reinforcing Federal Reserve’s cautious stance on rate cuts
The United States Bureau of Economic Analysis is set to release the PCE Price Index data for February on Friday at 12:30 GMT. The core Personal Consumption Expenditures Price Index is expected to rise 0.3% MoM and 2.7% YoY in February.
US: Trump's 'Liberation day' – What to expect?
Trump has so far enacted tariff changes that have lifted the trade-weighted average tariff rate on all US imports by around 5.5-6.0%-points. While re-rerouting of trade will decrease the effectiveness of tariffs over time, the current level is already close to the highest since the second world war.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.