Dollar Rebounds as BoJ Intervenes in FX Markets

The US dollar rebounded overnight after a suspected intervention by the Bank of Japan (BoJ) in the foreign exchange markets. The BoJ's actions, which began on Thursday and Friday, appeared to have slowed down the decline of the USD/JPY pair, which had touched lows of 155.23.

However, despite the intervention, the US dollar continued its upward trajectory, reaching 157.320 by morning. This pushed other currencies lower, including the Australian dollar, which fell below 0.7000 and declined 0.3% overnight.

Australia's manufacturing sector showed signs of improvement in July, with the S&P Global Manufacturing PMI rising to 52.0 from 51.5 in June. However, growth remained modest, suggesting that the recovery is still at an early stage.