Australian Dollar falls as strong US manufacturing data boosts Greenback

US ISM Manufacturing PMI rose to 54 in May, beating expectations and supporting the US Dollar.
Renewed tensions in the Middle East pressured risk sentiment, weighing on the Australian Dollar.
Friday's US Nonfarm Payrolls report will be the focus for clues on the Fed's next policy moves.

Agustin Wazne FXStreet

The AUD/USD pair trades near the 0.7160 region on Monday as the United States Dollar (USD) strengthens following upbeat manufacturing data, while renewed geopolitical tensions and cautious market sentiment weigh on the Australian Dollar (AUD).

The latest Institute for Supply Management (ISM) Manufacturing PMI rose to 54 in May from 52.7 in April, surpassing market expectations of 53 and signaling accelerating growth in the US manufacturing sector.

Meanwhile, risk-sensitive currencies such as the Australian Dollar came under pressure after Iran reportedly halted message exchanges with the US following attacks on Lebanon. The development revived concerns about broader tensions in the Middle East, boosting demand for the US Dollar and other defensive assets.

Short-term technical analysis:

On the 4-hour chart, AUD/USD trades at 0.7161. The pair maintains a neutral-to-mildly-constructive tone, trading above the 20-period Simple Moving Average (SMA) at 0.7156 but remains capped by the 100-period SMA at 0.7175. This configuration suggests consolidation within a tight range, with short-term buyers defending the recent recovery while the broader upturn remains unconfirmed. The Relative Strength Index (RSI) hovers at 50.0, hinting at balanced momentum after the latest bounce.

On the topside, initial resistance emerges at 0.7163, the nearby horizontal barrier, followed by the 100-period SMA at 0.7175, where a sustained break would be needed to open a more decisive bullish phase. On the downside, immediate support is provided by the 20-period SMA at 0.7156, with further cushions at 0.7152 and 0.7148, ahead of a more significant floor around 0.7135. A clear move outside this 0.7135–0.7175 band would likely define the next directional leg.

(The technical analysis of this story was written with the help of an AI tool.)

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Week ahead: Fed, BoJ and BoE decide amid inflation dilemma

A crucial central bank week looms for markets as both the Federal Reserve and Bank of Japan are under pressure from all sides, with their credibility at stake. The Bank of England looks set to have an easier ride, at least for now, while inflation releases will be watched too as war continues to rage in the Middle East.

CFTC Report: Japanese Yen reversal leads a broader positioning reset

The week in one sentence: Yen positioning swung back into net longs in the week to September 8, leading to a 103.0K-contract improvement. Canadian Dollar shorts also fell sharply, while Oil buying accompanied another price rise. Euro, Sterling and Swiss Franc positioning weakened despite firmer currencies, leaving those moves unconfirmed by speculative flows.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.