AUD Slides to 0.70 as US ISM PMI Revives USD

The Australian Dollar (AUD) has retreated from its daily high of 0.7050, trading at 0.7000 as the US Dollar recovers ground due to positive data and easing geopolitical tensions in the Middle East.

The US ISM Manufacturing PMI for July came in at 55.6, up from 53.3, its highest level since 2022. The sub-components revealed that companies are hiring, but input costs remain elevated.

The US economic calendar is set to be busy, with employment data taking center stage. If the jobs market remains solid, next week's inflation data could move the needle sharply for the Federal Reserve, which aims to tackle five years of high inflation.