AUD/USD finds support near 0.6830, turns flat above 0.6850

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  • AUD/USD rose on upbeat PMI data from China during the Asian session.
  • US Dollar Index clings to gains near 97.70 ahead of key events.
  • Wall Street looks to open the day in the positive territory.

The AUD/USD pair gained traction during the Asian session on the back of upbeat PMI data releases from China. After advancing to a daily high of 0.6886, however, the pair dropped all the way to 0.6833 pressured by the broad-based strength. Nevertheless, AUD/USD pared its losses and was last seen trading flat on the day near 0.6860.

AUD capitalizes on Chinese data, RBA commentary

On Tuesday, the NBS Manufacturing PMI in China came in at 50.9 in June, revealing that the economic activity in the manufacturing sector expanded at a stronger pace than it did in May. Moreover, the Non-Manufacturing PMI rose to 54.4 from 53.6 in May.

Meanwhile, Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle reiterated that there was no need for negative interest rates and provided a boost to the AUD. “The government has been providing plenty of fiscal stimulus,” Debelle added.

During the European trading hours, the selling pressure surrounding the major European currencies ramped up the demand for the greenback. With the US Dollar Index advancing to its highest level since the first week of June at 97.78, AUD/USD pulled away from its highs.

Later in the day, FOMC Chairman Jerome Powell and Treasury Secretary Steven Mnuchin testimony before the US House of Representatives Financial Services Committee will be watched closely by market participants. Additionally,  the Conference Board’s Consumer Confidence Index and the ISM Chicago’s PMI data will be looked upon for fresh impetus.

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