A Six-Day Low Is Reached as AUD/USD Hovers Near 0.6600

On Thursday, the Australian Dollar depreciated 0.20 percent against the US Dollar for the third consecutive day, as investors digested the most recent S&P Global PMI report from the United States, which suggested an acceleration in the economy. As a result, expectations of a 27-basis-point FEC rate reduction by the end of the year were dashed, as speculators had anticipated such a move. At 0.6605, the AUD/USD exchange rate is essentially unchanged.

The session concluded with losses on Wall Street. In the wake of the S&P Global Composite PMI report, yields on US Treasury bonds increased to 54.4, the highest level in twelve months. The Manufacturing PMI expanded by 50.9, surpassing estimates and forecasts of 50.0, while the Services PMI increased to 54.8, its greatest level since October 2022.

The AUD/USD increased from approximately 0.6650 to 0.6618 subsequent to the data release. The US Department of Labor (DOL) previously reported that Initial Jobless Claims increased marginally, from 223K in the previous reading to 215K, which is below expectations.

The most recent FOMC minutes and data released on Thursday indicated that Fed officials are prepared to tighten policy "should risks to the outlook materialize and the situation warrant such action." Inflation "would take longer than previously anticipated," they continued, justifying the continuation of higher interest rates.

Regarding the Australian economy, the final readings for May's Judo Bank Manufacturing and Services PMIs were released on Thursday's economic agenda. The Services PMI remained unchanged at 49.6, whereas the Manufacturing PMI declined from 53.6 in its preliminary report to 53.1.