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AUD/USD loses traction around 0.6538, up 0.04% on the day.
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Australian Judo Bank Manufacturing PMI for November came in at 47.7 vs. 48.2 prior; Services PMI eased to 46.3 vs. 47.9 prior.
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The University of Michigan Consumer Sentiment Index came in at 61.3 from an initial reading of 60.4.
The AUD/USD pair faced rejection of 0.6600 and traded near 0.6538 in the Asian session on Thursday. Pair downtick by renewed US dollar (USD) demand after US economic report. Markets are lower on Thursday ahead of the US Thanksgiving Day holiday and Friday’s trading sessions will be shortened.
Thursday’s latest data suggested further evidence of an economic slowdown in Australia’s economic activity in November. The preliminary Australian Judo Bank manufacturing PMI for November came in at 47.7, compared to 48.2 the previous month, the worst reading in 42 months. Meanwhile, the Judo Bank Services PMI fell to 46.3 from 47.9 previously and the Composite PMI touched a 27-month low of 46.4 from the previous reading of 47.6 in November. The soft data weighed on the Australian dollar (AUD) and acted as a headwind for the AUD/USD pair.
On the other hand, the US University of Michigan Consumer Sentiment Index experienced its fourth consecutive monthly decline in November, falling to 61.3 from a preliminary reading of 60.4. Additionally, durable goods orders fell 5.4% MoM in October from a 4.6% increase in the previous month. Regarding labor market data, weekly jobless claims unexpectedly fell to 209K, the biggest drop since June. Continued claims were 1.84M versus 1.862M previously denied
Market volume was light ahead of the Thanksgiving holiday in the US. Equities extended their rally as markets believed the Federal Reserve’s (Fed) tightening cycle was complete.
Looking ahead, market participants will keep an on the preliminary US S&P Global PMI for November, due on Friday. The Manufacturing PMI and Services PMI readings are expected to rise 49.8 and 50.4, respectively. Traders will take cues from the figures and find trading opportunities around the AUD/USD pair.
AUD/USD
