AUD/USD flows: Strong PMI

The antipodeans are the standout performer against the USD as the greenback trade broadly softer. The Australian service PMI continue to show the strength of Australian services sector, which has been highlighted by the RBA, a critical factor in the high inflation picture in Australia. While we do not see RBA to resume tightening, a sequence of strong service data may push back early cut expectations.

Regional risk is performing individually while U.S. equity indexes are higher. AUD/USD is trading 0.37% higher at 0.6589 and NZD/USD is 0.44% higher at 0.6035.