The Australian Dollar stays under pressure below 0.6900 against a stronger US Dollar following China’s PMI data.

AUD/USD comes under renewed selling pressure on Wednesday as a combination of factors continues to support the US Dollar. Ongoing uncertainty surrounding Iran and growing expectations of further Fed rate hikes remain key tailwinds for the greenback. Meanwhile, the pair shows little reaction to China’s RatingDog Manufacturing PMI, which came in broadly in line with expectations.

AUD/USD failed to build on Tuesday’s rebound from the 0.6865 area, its lowest level in three months, and came under renewed selling pressure during Wednesday’s Asian session. The pair slipped back below 0.6900 and showed little reaction to China’s latest private manufacturing PMI data.

China’s RatingDog Manufacturing PMI eased to 51.7 in June from 52.2 in May, reinforcing concerns about slowing economic momentum. Combined with Tuesday’s official PMI figures, which highlighted weak domestic demand and subdued consumer spending, the data weighed on the Australian Dollar, which is often viewed as a proxy for China’s economic health. A modest recovery in the US Dollar further added to the pair’s downside pressure.

The Greenback continued to benefit from its safe-haven appeal amid uncertainty surrounding US-Iran negotiations and growing expectations that the Federal Reserve may need to raise interest rates further. Although US officials arrived in Qatar to discuss the implementation of a preliminary peace agreement, Iran’s reluctance to engage with US envoys has cast doubt on the prospects for a lasting resolution, keeping geopolitical risks elevated.

At the same time, stronger-than-expected US labor market data supported the USD. The JOLTS report showed job openings climbed to a two-year high of 7.594 million in May, underscoring continued labor market resilience. Combined with concerns that renewed tensions in the Middle East could reignite inflationary pressures, the data strengthened market expectations for additional Fed tightening.

Investors now await remarks from Fed Chairman Kevin Warsh at the ECB Forum in Sintra, alongside key US data releases including the ADP employment report and ISM Manufacturing PMI. Attention will then turn to Thursday’s closely watched Nonfarm Payrolls report, which could provide the next major catalyst for AUD/USD.