The Australian dollar has stopped declining against the US dollar. The current AUDUSD quote is 0.6766.
On the one hand, the Aussie's position is still under a lot of pressure from the strong US dollar. On the other hand, the Australian economy is showing some signals of stabilisation, which could support the AUD.
The preliminary PMI in the Australian manufacturing sector in July rose to 49.6 points from the previous 48.2 points. This increase indicates that companies and enterprises in this segment are actively seeking support from consumer demand and are gradually ramping up their production.
However, the services sector is showing little optimism, as business activity declined to 48.0 points from 50.3 points previously. This decrease has pushed the indicator below the psychologically crucial level of 50.0 that separates growth from decline.
The AUD exchange rate this year heavily depends on developments in China. The published statistics from China revealed a mixed performance, suggesting the need for domestic support. This is not favourable news for Australia and its currency.