AUD Rebounds on Strong PMIs Amid Ongoing Global Tensions

The Australian Dollar has rebounded against the US Dollar after better-than-expected domestic flash PMIs signaled a second consecutive month of expansion for Australia's private sector.

According to data from S&P Global, the Composite Purchasing Managers Index (PMI) rose to 52.6 in July, indicating that activity is generally expanding and supporting the AUD.

The rebound in the AUD comes despite ongoing tensions between the US and Iran, which have fueled inflationary concerns and bolstered US Federal Reserve rate hike bets.

US President Donald Trump's new trade tariffs of between 10% and 12.5% on 60 of the top trading partners also weighed on riskier assets, further supporting the safe-haven Greenback.