- AUD/USD reached a new YTD low at around 0.6776.
- US ISM Manufacturing PMI for June continued expanding but at a slower rhythm.
- Australia and China’s PMI came better than expected, but a jump in US bond yields kept the pair from further recovery.
The AUD/USD nose-dive to fresh YTD lows near 0.6776, on harmful US manufacturing data, thought as the New York session progressed has recovered some ground, and is closing to the 0.6800 figure. At 0.6821, the AUD/USD stays depressed and ready to finish the week with substantial losses of 2%.
A mixed market mood and a pullback in the US Dollar Index capped AUD/USD losses
Sentiment has improved as Friday’s session begins to wane. US equities pare earlier losses except for the heavy-tech Nasdaq, falling 0.19%, after slowing on a weaker than expected US ISM manufacturing data, which expanded though reached a two-year low, as new orders shrank. That sounded investors’ alarms, who also flew towards haven assets and bought US Treasuries, as depicted bu US Treasury yields plunging, with the 2-year at a time dropped 25 bps, as traders priced in a “less” aggressive than expected 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 while has been “held back by supply chain constraints.” Furthermore, the employment index, despite contracting, shows progress, according to the survey. Prices eased for the third month in a row while new orders fell.
During the Asian session, AUD/USD traders took cues from Australia S&P Global Manufacturing PMI, which came at 56.2, higher than foreseen, capping the AUD/USD fall. Late in the session, China’s Caixin Manufacturing PMI rose to 51.7 for June versus 50.1 expected and 48.1 prior.
AUD/USD Key Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades with mild gains near 1.0800, awaits US NFP
![EUR/USD trades with mild gains near 1.0800, awaits US NFP](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-59004818_XtraSmall.jpg)
EUR/USD is holding ground near 1.0800 in European trading hours on Friday. The paint draws support from a broad US Dollar pullback, as traders resort to position adjustments ahead of the all-important US Nonfarm Payrolls data release.
GBP/USD stays defensive below 1.2750 amid risk-off mood, ahead of NFP
![GBP/USD stays defensive below 1.2750 amid risk-off mood, ahead of NFP](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-689067954_XtraSmall.jpg)
GBP/USD stays on the back foot below 1.2850 in the European session on Friday. Sellers take a breather in the aftermath of the BoE interest-rate cut and amid renewed US Dollar weakness. Risk-aversion prevails, capping any upside in the pair ahead of the US jobs data.
Gold price jumps above $2,460 as US yields decline ahead of US NFP
![Gold price jumps above $2,460 as US yields decline ahead of US NFP](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/Gold_Bar_XAU_Precious_Metal_XtraSmall.jpg)
Gold price climbs above $2,460 as the US bond yields and the US Dollar face pressure ahead of the US NFP for July. The Fed appears comfortable with market speculation for interest rate cuts in September.
Bitcoin bounces off from the ascending trendline
![Bitcoin bounces off from the ascending trendline](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptocurrenciesusd_XtraSmall.jpg)
Bitcoin and Ethereum have retested their key support levels, with a break below these levels potentially signaling a bearish trend ahead. At the same time, Ripple shows resilience and could rally in the coming days after testing its key support level.
US Nonfarm Payrolls Forecast: Employment expected to grow by 175K in July
![US Nonfarm Payrolls Forecast: Employment expected to grow by 175K in July](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/american-workers-and-a-flag-gm123264454-4556680_XtraSmall.jpg)
Attention now turns to the high-impact Nonfarm Payrolls data for July, slated for release on Friday at 12:30 GMT, as markets continue to assess this week’s US Federal Reserve policy decision.