Australian Dollar Hits 8-Month High on Strong PMI Data and Risk Appetite

Australian Dollar Hits 8-Month High on Strong PMI and Risk Appetite

The Australian Dollar (AUD) continued its bullish run on Thursday, marking a fifth consecutive day of gains against the US Dollar (USD). The AUD/USD pair touched an eight-month high of 0.6619, driven by robust domestic economic data and growing risk-on sentiment across global markets.

Australia’s PMI Signals Strong Economic Expansion

According to Judo Bank and S&P Global, Australia’s Composite PMI rose to 53.6 in July, up from 51.6 in June, representing the strongest expansion since April 2022. This marks the 10th straight month of expansion for Australia’s private sector.

• Services PMI jumped to 53.8, the second-fastest pace in 16 months.
• Manufacturing PMI improved to 51.6, up from 50.6, signaling renewed factory activity.
• New orders for manufactured goods posted their strongest growth in over three years.

This wave of positive data underpins the Australian Dollar, signaling broad-based domestic economic momentum.

Broader Sentiment and US Data in Focus

The rise in global risk appetite is adding to AUD/USD strength, as markets anticipate a soft landing for the global economy amid easing trade tensions.

Meanwhile, traders are also eyeing the release of US PMI data later today, which could introduce fresh volatility to the AUD/USD pair depending on how it compares to market expectations.

Additionally, US Treasury Secretary Scott Bessent commented that a new Federal Reserve Chair nominee may be named by December or January, injecting further uncertainty into USD sentiment.

Explore More on Tredu

• AUD/USD Live Chart & Price Analysis
• Australia PMI Tracker
• How Risk Sentiment Moves Forex Markets