- AUD/USD reached a new YTD low at around 0.6776.
- US ISM Manufacturing PMI for June continued expanding but at a slower rhythm.
- Australia and China’s PMI came better than expected, but a jump in US bond yields kept the pair from further recovery.
The AUD/USD nose-dive to fresh YTD lows near 0.6776, on harmful US manufacturing data, thought as the New York session progressed has recovered some ground, and is closing to the 0.6800 figure. At 0.6821, the AUD/USD stays depressed and ready to finish the week with substantial losses of 2%.
A mixed market mood and a pullback in the US Dollar Index capped AUD/USD losses
Sentiment has improved as Friday’s session begins to wane. US equities pare earlier losses except for the heavy-tech Nasdaq, falling 0.19%, after slowing on a weaker than expected US ISM manufacturing data, which expanded though reached a two-year low, as new orders shrank. That sounded investors’ alarms, who also flew towards haven assets and bought US Treasuries, as depicted bu US Treasury yields plunging, with the 2-year at a time dropped 25 bps, as traders priced in a “less” aggressive than expected US Federal Reserve.
In the meantime, Timothy R. Fiore, Chair of the Institute for Supply Management, commented on the report that the manufacturing sector is being “powered” by demand while has been “held back by supply chain constraints.” Furthermore, the employment index, despite contracting, shows progress, according to the survey. Prices eased for the third month in a row while new orders fell.
During the Asian session, AUD/USD traders took cues from Australia S&P Global Manufacturing PMI, which came at 56.2, higher than foreseen, capping the AUD/USD fall. Late in the session, China’s Caixin Manufacturing PMI rose to 51.7 for June versus 50.1 expected and 48.1 prior.
AUD/USD Key Technical Levels
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
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.