AUD/USD Mired in Range as Mixed Data Offset Rate Hike Expectations
The AUD/USD pair is experiencing a lackluster day, oscillating within a narrow range as traders digest recent economic data from Australia and China. The Australian Bureau of Statistics reported a trade surplus of A$1,923M in July, exceeding revised estimates of A$2,341M and consensus forecasts of A$1,390M.
The release of China's RatingDog Services PMI also provided some insight, with the index climbing to 51.4 in August from 50.4 in July, beating market expectations of 50.6. However, despite these positive indicators, the AUD/USD pair has shown little reaction, holding steady above mid-0.7100s.
The strengthening case for a Reserve Bank of Australia (RBA) rate hike continues to support the Australian Dollar (AUD), with bets rising significantly following hotter-than-expected July inflation data and better-than-expected second-quarter Gross Domestic Product (GDP). Meanwhile, growing expectations of an interest rate increase by the US Federal Reserve (Fed) are bolstering the safe-haven US Dollar (USD).