AUDUSD Lingers At Two-Month Low; Firm Grasp Of DXY On 102 Levels Weigh

Published on Aug 03, 2023 11:48

Australian dollar is tumbling deeper into red, lingering at a two month low on Thursday on the back of a slew of domestic data that dampened sentiments. Australia Services PMI fell into contraction for the first time in four months with a score of 47.9 in July from 50.3 in June. Retail sales in Australia declined by 0.8% on month in June after a 0.8% growth in the previous month whereas trade surplus in the country widened to AUD 11.32 billion in June from a downwardly revised AUD 10.49 billion in May. Besides, a firm grasp of dollar index on 102 levels amid better than expected employment data is further weighing down the AUD alongside other major peers. ADP said private sector employment shot up by 324,000 jobs in July after a downwardly revised 455,000 jobs in June. The dollar index, a measure of the U.S. currency against six peers, rose to a fresh three-week high of 102.58 in reaction to the data and is currently trading at 102.46. The dollar index has gained 3.0% from a 15-month low on July 18. However, slightly upbeat data from China, its largest trading partner, showing an uptick in services PMI at 54.1 in July from June`s five-month low of 53.9 could likely limit losses in the Australian currency. AUDUSD pair is currently quoting at 0.6549, down 0.11% on the day and down 1.7% for the week.