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Australian Dollar slips after upbeat US ISM Manufacturing data
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FXStreet Forex & Commodities News
AUD/USD extends its pullback toward the 0.6990 area during Monday's American session after stronger-than-expected United States (US) manufacturing data reinforced the US Dollar (USD).
The ISM Manufacturing Purchasing Managers Index (PMI) rose to 55.6 in July, beating market expectations of 54.0 and improving from 53.3 in June.
Meanwhile, the New Orders Index increased to 56.7 from 56.0, pointing to solid demand across the manufacturing sector.
The stronger ISM figures prompted a rebound in US Treasury yields and supported the Greenback, weighing on risk-sensitive currencies such as the Australian Dollar (AUD).
Markets expect the Services index to be confirmed at 53.0 and the Composite gauge at 52.6, both unchanged from their prior readings and consistent with a modest but steady expansion in private-sector activity.