Australian Dollar Under Pressure on Large PMI Miss. Are Global Macro Conditions Starting to Bite for AUD/USD?

Australian Dollar, AUD/USD, PMI, Global Macro Themes

The Australian Dollar has started the week on the back foot after the release of PMI data today. The January numbers show the IHS Markit Australian Composite PMI fell to 45.3 from 54.9 previously.

The services sector saw a similar decline to 45.0 against the prior read of 55.1 but the manufacturing PMI held 55.3, down slightly from 57.7 for December.

This is likely due to the impact of the spread of Omicron disrupting business activity with case numbers continuing to soar.

Australia’s ASX 200 fell 2.27% on Friday and futures markets are indicating a decline of around 0.7% for the open here in Sydney.

The Australian Dollar also fell 0.57% on Friday and is slightly weaker already this morning.

Chart created in TradingView

— Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @DanMcCathyFX on Twitter

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