Australian Dollar Sees Good Bounce Ahead Of RBA

Published on Jul 31, 2023 14:41

The Australian dollar is staying upbeat against the dollar, extending gains into the European session on Monday. AUSUSD is recovering from a three and half week low and currently quoting at 0.6702, up half a percent today and is in the green region for the first time in four days. The pair is staying optimistic ahead of RBA policy decision due tomorrow. A Melbourne Institute data showing the monthly inflation gauge accelerated to 0.8% in July from 0.1% in June. Meanwhile, acting as a slight positive for the currency was data that manufacturing activity in China, the country`s biggest export market, continued to shrink in July, although at a slower pace. Manufacturing sector in China continued to contract in July, albeit at a slower pace, the latest survey from the National Bureau of Statistics said on Monday with a manufacturing PMI score of 49.3. That`s up from 49.0 in June and it beat expectations for 49.2. Non-manufacturing PMI however continued to fall, coming in at 51.5 as compared to 53.2 last month.