- AUD / USD lost its traction after climbing towards 0.7400.
- AUD / USD seeks to close fourth consecutive week in negative territory.
- The US Dollar Index remains near 93.00 after the mixed PMI data.
The pair AUD/USD It rose towards 0.7400 during European trading hours, but lost traction in the second half of the day. At the moment, the pair is down 0.1% on the day to 0.7370 and remains on track to close the fourth consecutive week in negative territory.
USD remains resilient against rivals after PMI data
Earlier in the day, the AUD managed to find demand amid market optimism. Although risk appetite remained intact in the second half of the day with the S&P 500 hitting a new all-time high, the dollar retained its strength and made it difficult for AUD / USD to rise. Currently, the US Dollar Index is up 0.12% to 92.94.
US data showed on Friday that economic activity in the manufacturing sector continued to expand at a record pace in July with Markit’s manufacturing PMI improving to 63.1 from 62.1 in June. In a negative tone, the Markit Services PMI fell to 59.8 and disappointed the market expectation of 64.8.
Commenting on the PMI surveys, “inflationary pressures and supply constraints, both in terms of labor and materials shortages, remain significant sources of uncertainty among companies, as does the delta variant, all which has pushed business optimism about next year to the lowest seen so far this year, “said Chris Williamson, chief business economist at IHS Markit.
Technical levels
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