Australia's S&P Global Manufacturing Purchasing Managers Index (PMI) increased to 51.2 in June from 50.7 in the previous month, according to preliminary data released by S&P Global on Tuesday [1]. The Services PMI also improved, climbing to 49.9 in June from 48.7 previously, while the Composite PMI rose to 49.8 from 48.7 [1]. Despite the stronger-than-expected Manufacturing PMI, which is generally considered bullish for the Australian Dollar (AUD) as it signals robust economic momentum, the immediate market reaction was muted. The AUD/USD pair remained under pressure, trading near 0.6998 and marginally down from Monday’s close at 0.6994 [1].
The article notes that the preliminary PMI data for June had little to no impact on the Australian Dollar, with the currency showing weakness against major peers, particularly the British Pound [1]. Technical analysis indicates that AUD/USD maintains a bearish near-term tone, trading below the 100-day simple moving average and the Bollinger middle band. The Relative Strength Index (RSI) at 36 suggests persistent downside pressure, though there is a risk of a short-term pause rather than an immediate collapse [1].
Resistance for AUD/USD is identified in the 0.7083–0.7085 area, with a stronger hurdle at 0.7212 if buyers attempt a deeper recovery. On the downside, notable support is seen around 0.6953, and a clear break below this level would reinforce the bearish outlook [1].
The article also highlights that a strong PMI reading above 50.0 could reinforce expectations for the Reserve Bank of Australia (RBA) to consider hiking interest rates, though no explicit forward guidance or analyst opinions are provided in the source [1].
CONCLUSION
Australia's Manufacturing PMI showed improvement in June, but the data had little immediate impact on the AUD/USD, which remains under technical pressure. While the stronger PMI could be seen as supportive for the Australian Dollar and RBA policy outlook, market sentiment remains cautious with the currency trading near recent lows.