Australian Dollar holds losses following PMI data

• The Australian Dollar declines following the soft Purchasing Managers Index data release on Monday.
• Australia Composite PMI fell to 49.9 in July from 50.2 in June, with Services PMI decreasing to 50.4 from 51.8.
• The US Dollar lost ground as recent downbeat employment data boosted expectations of a Fed rate cut in September.

The Australian Dollar (AUD) depreciates against the US Dollar (USD) following the release of downbeat Judo Bank Purchasing Managers Index (PMI) data on Monday. Additionally, the AUD receives pressure as the second-quarter inflation data has diminished expectations for another rate hike by the Reserve Bank of Australia (RBA) at its policy meeting on Tuesday.

Markets estimate an RBA rate cut in November, a move anticipated much earlier than previously forecasted for April next year. These factors are contributing to the downward pressure on the Australian Dollar and undermine the AUD/USD pair.