AUD Tumbles as Strong US PMIs Boost USD

The Australian Dollar (AUD) plummeted by 1.07% on Wednesday, trading around 0.7040 at the time of writing.

The decline was driven by a combination of factors, including a stronger US Dollar (USD) and disappointing economic data from Australia.

Australia's Composite PMI fell to 50.8 in September, down from 52.7 in August, indicating a contraction in manufacturing activity and a slowdown in the services sector.

The weaker figures temper expectations about the Reserve Bank of Australia's (RBA) tightening path, with the central bank expected to raise its policy rate by 25 basis points next week.