PMI

The U.S. dollar gained broad momentum after stronger U.S. PMI figures reinforced expectations for a more hawkish Federal Reserve stance. EUR/USD and GBP/USD weakened, USD/CAD climbed, and USD/JPY pushed higher as Treasury yields advanced.

EUR/USD extended its decline to 1.1430, its weakest level since July 29, as traders awaited flash manufacturing and services PMI releases from the US and the European Union. Technical momentum remains tilted to the downside while the pair trades below 1.1500, with 1.1353 viewed as the next bearish target by chart watchers.

GBP/USD has steadied after recent Federal Reserve and Bank of England decisions, trading near 1.3395 after rebounding from this month’s low of 1.3336. Technical traders are weighing a small double-bottom pattern against continued pressure below the Supertrend indicator, leaving 1.3300 in focus for bears.

The U.S. Dollar Index moved away from session lows after stronger services PMI data helped offset a softer manufacturing reading. Major currency pairs remained driven by PMI surprises, commodity strength, Japanese inflation data and key technical levels.

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.