AUD rebounds on oil price, PMI data

The Australian Dollar has rebounded after a depressing finish, possibly due to the surge in crude oil, Australia’s second-largest export. The AUD recovered against its US counterpart on Monday, rising up to a band of major Moving Averages in the 0.6700 zone.

The Australian Dollar managed to shrug off downbeat data from its largest trading partner China, possibly due to a rise in crude oil prices. The release of lower-than-expected US data in the form of the Chicago Purchasing Managers’ Index further fuels the rally.

Key data releases for the US Dollar include labor market data, Initial Jobless Claims, and Nonfarm Payrolls. The ISM gauges for the US manufacturing and services sectors will also be under the spotlight, given the data-dependence context highlighted by the Fed in its last meeting on July 26.

China’s Non-Manufacturing PMI data came out lower than previously, with Chinese Construction PMI showing the most concerning decline due to rising unemployment in China. Manufacturing PMI beat expectations of 49.2, but only by one point.