Ella 
AUD/USD continued its eighth straight day of declines after mixed data from Australia’s Judo Bank Purchasing Managers’ Index (PMI) released on Wednesday. In addition, subdued economic activity in China also put additional selling pressure on the Australian dollar. The People’s Bank of China (PBoC) unexpectedly cut interest rates on Monday, exacerbating market concerns about China’s weak economy.
In addition, the weak outlook for the Chinese economy led to a decline in iron ore prices, further pressuring the Australian dollar. Iron ore prices fell towards $108.00, the lowest level in three weeks. The decline was particularly felt in Australia, the largest exporter of the precious metal.
The US dollar (USD) may struggle as bets on a September rate cut by the Federal Reserve (Fed) rise, which may limit the downside for the Australian dollar against the US dollar (AUD/USD). Traders are awaiting global Purchasing Managers’ Index (PMI) data released on Wednesday for new insights into the state of the US economy.
Markets are now pricing in a 93.6% chance of a 25 basis point rate cut at the Fed’s September meeting, up from 88.5% the day before, according to CME Group’s FedWatch Tool.
