Australian Dollar comes under pressure as US Dollar regains ground
- The Australian Dollar weakens after China's Manufacturing PMI misses expectations.
- The US Dollar rebounds after its recent pullback, weighing on AUD/USD.
- Markets remain cautious over conflicting US-Iran statements as investors await the ISM Manufacturing PMI.
AUD/USD falls to around 0.7000 on Monday at the time of writing, down 0.30% on the day, as a rebound in the US Dollar (USD) outweighs the support provided by Chinese economic data for the Australian Dollar (AUD).
China's RatingDog Manufacturing Purchasing Managers Index (PMI) slowed to 50.9 in July from 51.7 in June, missing the market consensus of 51.5. Despite the slowdown, the index remains above the 50 threshold, signaling continued expansion in manufacturing activity in Australia's largest trading partner, helping to limit losses in the Australian Dollar.
Comments from the Reserve Bank of Australia (RBA) also continue to support expectations of a restrictive monetary policy stance. RBA Assistant Governor Sarah Hunter said the recent moderation in inflation was mainly driven by lower fuel prices, while underlying inflationary pressures remain above the central bank's 2%-3% target range. Markets therefore continue to price in the possibility of another rate hike this year.
Meanwhile, the US Dollar (USD) is finding renewed support after its recent decline. Investors remain focused on geopolitical developments after US President Donald Trump said he had suspended planned military strikes against Iran to allow negotiations over Iran's nuclear program and the full reopening of the Strait of Hormuz to resume.
However, Iranian officials rejected Trump's claims, describing them as "another lie" and insisting that the country's armed forces remain on high alert. These conflicting statements continue to keep market sentiment cautious, limiting investors' appetite for risk.
Markets are also assessing the impact of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decision to increase production in September, a move that has contributed to lower Oil prices and reduced expectations of additional monetary tightening by the Federal Reserve (Fed).
Investors now turn their attention to the release of the Institute for Supply Management (ISM) Manufacturing PMI later on Monday, ahead of Friday's US Nonfarm Payrolls (NFP) report, which could provide fresh clues about the Fed's next monetary policy decisions.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.02% | 0.15% | -0.36% | 0.15% | 0.31% | 0.17% | 0.22% | |
| EUR | -0.02% | 0.12% | -0.40% | 0.13% | 0.27% | 0.19% | 0.16% | |
| GBP | -0.15% | -0.12% | -0.49% | -0.03% | 0.15% | 0.07% | 0.06% | |
| JPY | 0.36% | 0.40% | 0.49% | 0.43% | 0.57% | 0.50% | 0.45% | |
| CAD | -0.15% | -0.13% | 0.03% | -0.43% | 0.16% | 0.08% | 0.03% | |
| AUD | -0.31% | -0.27% | -0.15% | -0.57% | -0.16% | -0.09% | -0.08% | |
| NZD | -0.17% | -0.19% | -0.07% | -0.50% | -0.08% | 0.09% | 0.00% | |
| CHF | -0.22% | -0.16% | -0.06% | -0.45% | -0.03% | 0.08% | -0.00% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
Author
Ghiles Guezout
FXStreet
Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.
