AUD Slips as US Dollar Rebounds Amid Geopolitical Uncertainty

The Australian Dollar (AUD) slipped against the US Dollar (USD) on Monday, falling by 0.30% to around 0.7000 as a rebound in the USD outweighed support from Chinese economic data.

China's PMI manufacturing index slowed to 50.9 in July, missing market consensus of 51.5, but remaining above the 50 threshold, signaling continued expansion in manufacturing activity. Despite this, the AUD's losses were limited.

RBA Assistant Governor Sarah Hunter said recent moderation in inflation was mainly driven by lower fuel prices, while underlying inflationary pressures remain above the central bank's target range. This supports expectations of a restrictive monetary policy stance and another rate hike this year.