• The Australian Dollar halts its losses after the release of the higher-than-expected China’s Manufacturing PMI.
• Australia’s Manufacturing PMI dropped for the fifth consecutive month to 47.2 in June.
• The US Dollar declines as recent inflation data raises the odds of the Fed’s rate cuts in 2024.

The Australian Dollar (AUD) holds ground as the Caixin Manufacturing PMI from China increased to 51.8 in June, defying the expectations of a decline to 51.2 from May’s 51.7. Any change in the Chinese economy could impact the Australian market as both nations are close trade partners.

The AUD received pressure as investors’ sentiment soured following data indicating that Australia's June manufacturing PMI contracted at its fastest rate since May 2020. Market focus now turns to the Reserve Bank of Australia's (RBA) upcoming policy meeting minutes on Tuesday for insights into the monetary policy direction.

The US Dollar (USD) depreciates due to the heightened expectations of the US Federal Reserve’s (Fed) deducting interest rates in 2024. The CME FedWatch Tool indicates that the likelihood of a Fed rate cut in December by 25 basis points has increased to nearly 32.0%, up from 28.7% a week earlier.