• The Australian Dollar declines following the mixed economic data on Wednesday.
• Australia’s Gross Domestic Product grew by 0.2% QoQ in Q2, an improvement from the previous quarter’s growth of 0.1%.
• The US ISM Manufacturing PMI inched up to 47.2 in August from 46.8 in July.

The Australian Dollar (AUD) extends its losses against the US Dollar (USD) following the release of the key economic data on Wednesday. Australia’s Gross Domestic Product (GDP) posted a 0.2% reading QoQ for the second quarter, up from the previous quarter’s 0.1% but falling short of the expected 0.3% readings.

Additionally, the upbeat Australian August Purchasing Managers Index (PMI) might have provided some support to the Australian Dollar (AUD) and limited the downside of the AUD/USD pair. Traders are now focusing on the upcoming speech by Reserve Bank of Australia (RBA) Governor Michele Bullock on Thursday, to gather more insights into the central bank's hawkish stance on monetary policy.

The US Dollar receives support as traders evaluate the economic and monetary outlook. The ISM Manufacturing PMI indicated that factory activity contracted for the fifth consecutive month, with the pace of decline slightly exceeding expectations. This renewed concerns about the impact of elevated interest rates on the health of the US economy.