AUD Maintains Strength Amid Mixed Global Signals
The Australian Dollar has continued to perform strongly despite mixed signals from China's manufacturing sector. The RatingDog Manufacturing PMI index eased to 50.9 in July, falling short of market expectations of 51.5. This moderate decline suggests that expansion in manufacturing activity is still present.
RBA Assistant Governor Sarah Hunter characterized Australia's latest CPI print as 'a touch softer' than anticipated, with the downside surprise driven mainly by lower fuel prices. However, this moderation is narrowly focused and does not signal a broader disinflation trend.
The US Dollar has struggled against major peers following Japan's confirmation of joint currency interventions. Tokyo spent up to $58.97 billion on Thursday in coordinated yen-buying operations with the United States. The Japanese authorities have signaled their readiness to intervene again if necessary, and close communication with US counterparts remains ongoing.