- AUD / USD started the new week on a firm footing.
- The US dollar index accelerates its decline after last week’s rally.
- Focus shifts to US Markit Manufacturing and Services PMI.
After losing more than 200 pips last week, the pair AUD/USD It is experiencing a decisive rally on Monday and was last seen gaining 0.65% on the day at 0.7180.
AUD ignores disappointing data from Australia
Hours earlier, data from Australia revealed that the Commonwealth Bank’s services PMI and the Commonwealth’s manufacturing PMI fell to 43.3 and 51.7, respectively, in August. Although these figures were worse than analyst estimates, improving market sentiment helped the AUD find demand.
Reflecting market optimism, both the Dow and S&P futures gain about 0.4% before the opening bell.
On the other hand, the US Dollar Index (DXY) is falling ahead of the release of mid-level data from the US. Currently, the DXY is losing 0.25% to 93.23.
IHS Markit will release preliminary US Manufacturing and Services PMI reports later in the day. July’s existing home sales and the Federal Reserve Bank of Chicago’s National Activity Index will also be on the US economic agenda.
Should risk flows continue to dominate financial markets in the second half of the day, the AUD / USD is likely to maintain its recovery momentum. There will be no release of high-level data from Australia on Tuesday.
Technical levels
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
