AUD/USD Slumps as Strong US Manufacturing Data Boosts Dollar

The Australian Dollar slipped on Monday after stronger-than-expected US manufacturing data bolstered the Greenback, pushing the AUD/USD pair below 0.7050.

The ISM Manufacturing Purchasing Managers Index (PMI) rose to 55.6 in July, beating market expectations of 54.0 and improving from 53.3 in June.

However, the softer reading in the Prices Paid component could temper expectations of an even more aggressive Fed stance if inflation continues to cool gradually.

Markets now await the Asia-Pacific session, where Australia will release the final S&P Global Services and Composite PMIs for July.