• AUD/USD reached a new YTD low at round 0.6776.
  • US ISM Manufacturing PMI for June continued increasing however at a slower rhythm.
  • Australia and China’s PMI got here higher than anticipated, however a soar in US bond yields saved the pair from additional restoration.

The AUD/USD nose-dive to recent YTD lows close to 0.6776, on dangerous US manufacturing knowledge, thought because the New York session progressed has recovered some floor, and is closing to the 0.6800 determine. At 0.6821, the AUD/USD stays depressed and able to end the week with substantial losses of two%.

A mixed market mood and a pullback within the US Dollar Index capped AUD/USD losses

Sentiment has improved as Friday’s session begins to wane. US equities pare earlier losses apart from the heavy-tech Nasdaq, falling 0.19%, after slowing on a weaker than anticipated US ISM manufacturing knowledge, which expanded though reached a two-year low, as new orders shrank. That sounded buyers’ alarms, who additionally flew in direction of haven property and acquired US Treasuries, as depicted bu US Treasury yields plunging, with the 2-year at a time dropped 25 bps, as merchants priced in a “less” aggressive than anticipated 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 whereas has been “held back by supply chain constraints.” Furthermore, the employment index, regardless of contracting, reveals progress, in line with the survey. Prices eased for the third month in a row whereas new orders fell.

During the Asian session, AUD/USD merchants took cues from Australia S&P Global Manufacturing PMI, which got here at 56.2, greater than foreseen, capping the AUD/USD fall. Late within the session, China’s Caixin Manufacturing PMI rose to 51.7 for June versus 50.1 anticipated and 48.1 prior.

AUD/USD Key Technical Levels



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