AUD Surges on Stronger China PMI Data Amid Hawkish Fed Sentiment

The Australian Dollar (AUD) continues to strengthen against its US counterpart, buoyed by better-than-expected Chinese manufacturing data. China's PMI index rose to 51.5 in August from 50.9 in July, exceeding market forecasts.

This is a positive development for the AUD as Australia and China are close trading partners, with any changes in China's economy having an impact on the Australian currency.

The US Dollar (USD) has rebounded somewhat due to hawkish sentiment surrounding the Federal Reserve's policy stance. Traders have increased their bets on a September rate hike after Fed officials emphasized the importance of getting inflation back to its 2% target.