Australian Dollar Dips as Mixed China PMIs, Firm Inflation Weigh

The Australian Dollar dipped to 0.7160 on Monday, down 0.08% from the day before.

This comes as mixed Chinese economic data and firm inflation weighed on the currency.

China's National Bureau of Statistics reported that the Manufacturing Purchasing Managers Index (PMI) improved to 49.8 in August, slightly above market expectations of 49.7.

However, both PMIs remain below the 50 threshold separating expansion from contraction, limiting the positive impact on the Australian Dollar given Australia and China's close trade ties.

Australia's TD-MI Inflation Gauge accelerated to 4.8% YoY in August, supporting the Reserve Bank of Australia's (RBA) cautious stance on interest rates.