AUD/USD steadies around 0.7500 on modest PMI performance

• AUD/USD is hovering around 0.7500 on modest PMI performance and positive DXY.
• The aussie has been a performer in the Fx domain on galloping metal prices recently.
• The DXY may trace bulls on hawkish stance from the FOMC members.

The AUD/USD pair is consolidating around 0.7500 and is hoping for a fresh impulse wave after overstepping Wednesday’s high at 0.7508. The asset is trading lackluster on Thursday after the IHS Markit unfolded Composite, Manufacturing, and Services Commonwealth Bank PMI report.

The Manufacturing and Services PMI have landed at 57.3 and 57.9 against the previous print of 57 and 57.4 respectively while the Composite PMI has been recorded at 57.1 in comparison with the prior figure of 56.6.

The pair has been performing stronger from the last week despite the headwinds of risk-off impulse and hawkish monetary policy from the Federal Reserve (Fed). The reason behind the recent rally could be tagged to the rising metal prices. Prices of the metals are rallying sharply, which are bringing more flows for the aussie and hence underpinning it against the greenback.

The US dollar index (DXY) has surpassed its previous consolidation range of 98.60-98.67 and is moving towards the north. The hawkish stance from the Fed policymakers is likely to keep the greenback in a bullish trajectory. While the 10-year US Treasury yields have reclaimed 2.33% after a significant fall on Wednesday.

Going forward, the major is likely to witness high uncertainty as Thursday’s calendar is full of macro events. The US docket will report Initial Jobless Claims, Durable Goods Orders, and Markit (Manufacturing and Services) PMI on Thursday, which will keep investors on the sidelines.