AUD/USD rallies above 0.6800 on weak US ISM PMI, soft US Dollar

  • US Dollar remains on the defensive, spurred by the ISM manufacturing PMI dropping to the contractionary territory.
  • Inflation in the United States remained unchanged, while unemployment claims fell.
  • The Australian Dollar got bolstered by a weaker US Dollar as traders eye RBA’s Governor Lowe.
  • AUD/USD Price Analysis: Could test 0.7000 if the AUD/USD clears the 200-DMA.

The Australian Dollar (AUD) advances in the New York session but retraces after hitting a new two-month high around 0.6840s as sentiment shifted sour. United States (US) economic data portrays a gloomy economic outlook while increasing borrowing costs by the Federal Reserve (Fed) would keep the economy under pressure. That said, the US Dollar (USD) remains on the defensive, undermined by falling US Treasury yields. At the time of writing, the AUD/USD clings above the 0.6800 figure.

US Dollar weakened as the ISM Manufacturing PMI shrank

US equities are trading…

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