PMI

The U.S. Dollar Index moved away from session lows after U.S. services activity came in stronger than expected, offsetting a softer manufacturing reading. Major currency pairs stayed active as traders weighed Euro Area, U.K. and Japan data alongside rising Treasury yields and commodity strength.

The U.S. dollar moved lower as falling oil prices reduced demand for safe-haven assets and traders assessed fresh PMI releases. EUR/USD and GBP/USD gained ground, USD/CAD held mostly flat, and USD/JPY tested resistance near 164.00 after Japan inflation data.

AUD/USD pushed above a closely watched resistance area after weaker US services data added pressure on the dollar. Traders are now focused on Federal Reserve minutes, Fed commentary, 0.6865 support and 0.7100 resistance.

AUD/USD climbed for a second consecutive day to its highest level since June 23rd as the US dollar weakened after softer jobs data. Technical traders are watching whether resistance near 0.7050 caps the rebound or whether support around 0.6850 comes back into focus.