Australian Dollar consolidates despite an improved risk sentiment amid strong PMI figures

• The Australian Dollar may appreciate as RBA Minutes indicate a hawkish mood on the rate trajectory.
• Australia’s Judo Bank Composite PMI increased to 51.4 in August, fueled by stronger service sector growth.
• The latest FOMC Minutes indicate that most Fed officials agreed on a rate cut in September.

The Australian Dollar (AUD) moves sideways against the US Dollar (USD) on Thursday, driven by strong business activity data that lifted market sentiment. Further support for the AUD/USD pair came from the Reserve Bank of Australia’s (RBA) August Meeting Minutes, which suggested that the cash rate might stay unchanged for an extended period.

Australia’s Judo Bank Composite Purchasing Managers Index (PMI) rose to 51.4 in August, up from 49.9 in July. This increase marks the fastest expansion in three months, driven by a stronger performance in the services sector, despite a more pronounced contraction in manufacturing production.